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Stock A has a level of systematic risk, Beta_A =1.5, and statistics show that the expected return on the market portfolio is 12% and the
Stock "A" has a level of systematic risk, Beta_A =1.5, and statistics show that the expected return on the market portfolio is 12% and the risk-free rate is 4%. The equilibrium rate of return for A is, A. 4% B. 10% C. 12% D. 16% E. 20%
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