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Suppose that the average excess return on stocks is 12.00% and that the risk-free interest rate is 3.00%. Compute expected returns to stocks with

Suppose that the average excess return on stocks is 12.00% and that the risk-free interest rate is 3.00%. Compute expected returns to stocks with each of the following beta coefficients using the capital asset pricing model (CAPM): (Hint: Do not forget to enter the minus sign if the value of the return to stock is negative.) Return to Stocks (%) B -0.7 0.2 1.0 2.0 Based on the CAPM and your calculations for the return to stocks, what does it mean when the coefficient B

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