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The market rate of return is 139 Kare also has a large investment in the T-bills. The risk-free rate is 45. Karenhas invested in a

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The market rate of return is 139 Kare also has a large investment in the T-bills. The risk-free rate is 45. Karenhas invested in a stock with a beta of 1.4 She is expecting a 14" rate of return on the stock. She is thinking about moving some of her investment from the T-bills to the stock What is the most appropriate answer Os None of the above Ob Move it, because the expected return is more than the market retum It depends on the expected inflation rate Od No, do not move it, because the expected return is close to the market retum e. Move it, because she will earn 10% more than the risk-free rate

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