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The risk-free rate is 5 percent. Stock A has a beta = 1.0 and Stock B has a beta = 1.4. Stock A has a
The risk-free rate is 5 percent. Stock A has a beta = 1.0 and Stock B has a beta = 1.4. Stock A has a required return of 11 percent. If the Market Rate is 15% what is the trading strategy? a. Ignore b. Sell c. Buy d. Hedge
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