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Find what is the risk premium of stock a

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Stock A has an expected return of 15% and a Beta of 1.2. Stock B has an expected return of 20% and a Beta of 2.0. The risk-free rate is 3%.

Problem a) What is the risk premium of Stock A?

Problem b) What is the risk premium of Stock B?

Problem c) Which stock represents the "better" investment? Explain

Reference no: EM132707410

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