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The risk-free rate of return is 5%, and the market return is 8%. The betas of Stocks A, B, C, and D, are 0.62, 0.90,
The risk-free rate of return is 5%, and the market return is 8%. The betas of Stocks A, B, C, and D, are 0.62, 0.90, 1.30, and 1.45, respectively. The expected rates of return for Stocks A, B, C, and D are 6.2%, 7.7%, 9.5%, and 10.5% respectively. An investor will be indifferent towards buying or selling which of the above stocks?
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