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You are analyzing two stocks, Stock X and Stock Y. Stock X has a beta of 1.1 and Stock Y has a beta of 0.5.

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You are analyzing two stocks, Stock X and Stock Y. Stock X has a beta of 1.1 and Stock Y has a beta of 0.5. Treasury-bills have a return rate of 2% and the market has an expected return of 16.00%. Compared to the less risky stock, the riskier stock has 8.4% lower expected return B.496 higher expected retum 81% lower expected return 8.8% higher expected return 8.6% higher expected retum

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