Question: According to the information below: An analyst expects a risk-free return of 4.5 percent, a market return of 14.5 percent, and the returns for Stocks

 According to the information below: An analyst expects a risk-free return

According to the information below: An analyst expects a risk-free return of 4.5 percent, a market return of 14.5 percent, and the returns for Stocks A and B that are shown in the following table. STOCK INFORMATION Stock Beta Analyst's Estimated Return 16% A B 1.2 0.8 Stock B analyst estimated return is 14% Stock B analyst estimated return is 12.5% Stock B analyst estimated return is 16% Stock B analyst estimated return is 15.5%

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