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Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4%. Assuming the stock market is

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Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4%. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Beta Constant growth rate A 1.20 7.00% B 1.40 7.00% Stock A must have a higher required return than Stock B Stock A must have a higher dividend yield than Stock B. Stock A must have a higher stock price than Stock B. Stock B's dividend yield is greater than its dividend growth rate. Stock A could have a higher expected return than Stock B

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