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There are three stocks. Stock A has a beta of Ba = 0:6 and an expected return of 8.8%. Stock B has a beta of
There are three stocks. Stock A has a beta of Ba = 0:6 and an expected return of 8.8%. Stock B has a beta of Bb = 1:2 and an expected return of 13.6%. If the CAPM holds in this market, what should be stock C's expected return if its beta is Bc = 1:05? 2
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