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Suppose you obtain the betas and required returns for the following five companies. Company Alphabet AT&T Murphy Oil U.S. Silica Beta 1.06 72 2.43

Suppose you obtain the betas and required returns for the following five companies. Company Alphabet AT&T

Suppose you obtain the betas and required returns for the following five companies. Company Alphabet AT&T Murphy Oil U.S. Silica Beta 1.06 72 2.43 2.71 Required Return 17.00% 8.00% 25.75% 29.50% The risk free rate is 1.44% and the return on the market portfolio is 12.45%. A. Compute the expected rate of return for each stock. Show your calculations. (5 Points) B. Is each stock referenced in this question in equilibrium? Explain. (5 Points)

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