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The return to the market was 9 percent and the risk-free return was 3 percent. The contractual/actual rates of return for three investments were for:
The return to the market was 9 percent and the risk-free return was 3 percent.
The contractual/actual rates of return for three investments were for:
A was 7 percent with a beta of .5.
B was 8 percent with a beta of .66, and
C was 10 percent with a beta of 1.33,
Specify/analyze which investment(s) should be accepted or rejected.
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