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Stock x has systematic risk of betax = 1 and the analyst forecasts its return to be 1 2 % . Stock Y has betay

Stock x has systematic risk of betax =1 and the analyst forecasts its return to be 12%. Stock Y has betay =1.5 and the analyst forecasts its return to be 13%. The market
portfolio's expected return is 11%, and rf=5%.
According to the CAPM, what are the required returns of the two stocks?
What is the alpha of each stock? Which stock is a better buy?
Draw the SML. Mark each stock's CAPM required rate of return on the line and the forecast return. Mark their alphas on the graph.
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