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The risk-free rate is 2%; Stock A's expected return is 8% and its beta is 1.2; Stock B's expected return is 7.5% and its beta

"The risk-free rate is 2%; Stock A's expected return is 8% and its beta is 1.2; Stock B's expected return is 7.5% and its beta is .89. Which stock has a better risk-adjusted returns?"

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