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Stock A has an expected return of 12% and a required return of 10%. Stock B has an expected return of 16% and a required
Stock A has an expected return of 12% and a required return of 10%. Stock B has an expected return of 16% and a required return of 18%. Which of the following statements is true? I. You should invest in stock A. II. You should invest in stock B. III. Stock A will have a higher beta than stock B. IV. Stock A will have a lower beta than stock B. Multiple Choice I only. II Only O Il and Ill only. I and IV only
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