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You have determined that stock A has a beta of +1.56 and the market is expected to decline 20% over the next year. Using security

You have determined that stock A has a beta of +1.56 and the market is expected to decline 20% over the next year. Using security market line (SML) analysis, calculate the percentage you expect the return of stock A to rise or fall over the next year. Answers: A. Fall by 15.6% B. Rise by 156% C. Fall by 1.56% D. Rise by 1.56%

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