# Question: Refer to Figure 7 2 and answer the following questions a What

Refer to Figure 7.2 and answer the following questions.

a. What return would you expect on a stock with a beta of 2.0?

b. What return would you expect on a stock with a beta of 0.66?

c. What determines the slope of the line in Figure 7.2?

a. What return would you expect on a stock with a beta of 2.0?

b. What return would you expect on a stock with a beta of 0.66?

c. What determines the slope of the line in Figure 7.2?

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