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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return

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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (lo) - .025 and the risk premiums for the two factors are (11) - 12 and (12) - 10. Stock Factor 1 bit Factor 2 biz 0.25 1.1 B -0.05 0.9 0.01 0.06 Calculate the expected returns for stocks A, B, C. (in this order) O 0.105 0.109 0.032 O 0.1320.128 0.033 O 0.165 0.1210.032 O 0.082 0.091 0.033

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