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The following are given for the two stocks of ABC o. Stock X Beta 1.6 Stock Y Beta .5 Risk-free rate is 12%; expected rate

The following are given for the two stocks of ABC o.

Stock X Beta 1.6

Stock Y Beta .5

Risk-free rate is 12%; expected rate of return is 16%

The rate of return for Stock Y is

Select one:

a. 16%

b. 14%

c. 12%

d. 18%

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