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You can invest in one of three stocks (stocks A,B and C). Information on the expected return of each stock plus information on T-Bills and

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You can invest in one of three stocks (stocks A,B and C). Information on the expected return of each stock plus information on T-Bills and the Market are given below: Stock A Stock Stock d T- Bills Market Port Exp. Return from Market .19 .15 .09 .07 .18 Variance .0200 .1196 .0205 .0000 .0064 Covariance with Mkt Portfolio .007 .0045 .0013 .0000 .0064 Using the CAPM, calculate the expected return for Stock's A, B, and C based on CAPM model. Which stocks would you recommend purchasing? Note that beta you must calculate Beta

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