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You expect an RFR of 10% in the market return of 14%. Compute the expected return for the following stocks, and plot them on an

You expect an RFR of 10% in the market return of 14%. Compute the expected return for the following stocks, and plot them on an SML graph.

Stock

beta

E(Ri)

U

.85

N

1.25

D

-0.20

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