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Stock A has a beta of 1 . 6 . Stock B has a beta of 0 . 9 and an expected return of 1

Stock A has a beta of 1.6. Stock B has a beta of 0.9 and an expected return of 14 percent. If the risk-free rate is 2 percent and both stocks have equal reward-to-risk ratios, what is the expected return on stock A?
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21.33 percent
24.89 percent
19.78 percent
23.33 percent

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