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Stock A has an expected return of 15% and a Beta of 1.2. Stock B has an expected return of 20% and a Beta of
Stock A has an expected return of 15% and a Beta of 1.2. Stock B has an expected return of 20% and a Beta of 2.0. The risk-free rate is 3%. a) What is the risk premium of Stock A? b) What is the risk premium of Stock B? c) Which stock represents the "better" investment? EXPLAIN HTML Editor
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