What should be the expected return of stock

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Reference no: EM131901466

Stock RRR has a beta of 1.20, an expected return of 15%, and an expected standard deviation of 45%. Stock TTT has a beta of 1.20 and an expected standard deviation of 55%. If markets are efficient, what should be the expected return of Stock TTT? Briefly explain how you support your answer. (and, how did you choose what formula was used)

Reference no: EM131901466

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