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Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true? According to

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Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true? According to the CAPM, the required rate of return of stock B is higher The beta of the equally weighted portfolio of stock A and B is 1.2 According to the CAPM, stock A has a higher idiosyncratic risk None of the above

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