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Stock A has an expected return of 13% and a standard deviation of 18%. Stock B has an expected return of 15% and a standard

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Stock A has an expected return of 13% and a standard deviation of 18%. Stock B has an expected return of 15% and a standard deviation of 16%. Which would be preferred by a more risk-averse investor? a. Stock A b. Stock B c. Neither Stock J has a beta of 1.6. If the risk-free rate is 2.5% and the expected market return is 10.5%, what is the required return of stock J? a. 16.80% b. 19.30% c. 15.30% d. 17.20%

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