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Arbitrage opportunities are ruled out

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Consider the single factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of _____.

A. 0.67 B. 1.00 C. 1.30 D. 1.69 E. 0.75

Reference no: EM131964108

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