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= Suppose the expected return of stock i is given by E (Ri) = Rp + Bi x [E (RM) Rf]. Stocks A, B, and

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= Suppose the expected return of stock i is given by E (Ri) = Rp + Bi x [E (RM) Rf]. Stocks A, B, and C have betas of 1.5, 0.5, and 1.2, respectively (see the table below). The values for Rf and E (RM) are 3% and 15% per year. Bi Stock A 1.5 Stock B 0.5 Stock C 1.2 Based on the above information, which stock is expected to earn a return of 9%? Stock B Stock A Stock C Stocks A and B

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