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You have the following stock data: Stock Prior Year Return Standard Deviation Beta A 8.34% 5% 1.31 B 9.24% 4% 1.42 Which of the following
You have the following stock data: Stock Prior Year Return Standard Deviation Beta A 8.34% 5% 1.31 B 9.24% 4% 1.42 Which of the following is CORRECT? Selected Answer: IncorrectC. Stock A has higher systematic risk exposure. Answers: A. The expected return of Stock B is expected to be 13.24% CorrectB. Stock A has more total risk exposure. C. Stock A has higher systematic risk exposure. D. Stock A is expected to earn a higher future return than Stock A. E. The capital gains yield of Stock A was 3.34%
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