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The Risk Free Rate Is 2

Question 55

Multiple Choice

The risk free rate is 2%.The expected rate of return on the market is 12%.Beta and the expected rate of return for four stocks are as follows.: ABC .8 , 10%; DEF 1, 12%; GHI 1.2 , 13%, and JKL 2, 22%.Which of these stocks should not be purchased?


A) ABC
B) DEF
C) GHI
D) JKL

Correct Answer:

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