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Suppose that the risk-free rate rf is positive. Let Po be the current price of a stock with a positive beta, and F, be its

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Suppose that the risk-free rate rf is positive. Let Po be the current price of a stock with a positive beta, and F, be its forward price level for future time T years later. If Pr is the current expected price of stock at time T, then which of the following defines the relationship between F, and PT? (i) (ii) (iii) (iv) Fo> Fo

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