Consider the following two stocks stock a has an expected

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Consider the following two stocks: Stock A has an expected return of 10% and a standard deviation of 8% per year. Stock B has an expect return of 8% and a standard deviation of 15% per year. Stock B has a lower expected return but a higher standard deviation compared to Stock A. Is this possible if we assume CAPM holds? Explain.

Reference no: EM13388675

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