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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 1.1 and constant growth rate of 7%. Stock B has a beta of 0.9 and constant growth rate of 7%. The market risk premium is 6.0% and the risk-free rate is 6.4%. 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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