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You have been scouring The Wall Street Journal looking for stocks that are good values and have calculated expected returns for five stocks. Assume the

You have been scouring The Wall Street Journal looking for stocks that are good values

and have calculated expected returns for five stocks. Assume the risk-free rate (rRF) is 5

percent and the market risk premium (rM - rRF) is 2.2 percent. Which security would be the best

investment? (Assume you must choose just one.)

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