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Stock A has a beta of 1 . 1 and constant growth rate of 7 % . Stock B has a beta of 0 .
Stock A has a beta of and constant growth rate of Stock B has a beta of and constant growth rate of The market risk premium is and the riskfree rate is Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Group of answer choices Stock A must have a higher dividend yield than Stock B Stock A must have a higher stock price than Stock B Stock Bs dividend yield equals its expected dividend growth rate. Stock B must have the higher required return.
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