Question: Consider the single - factor APT. Stocks A and B have expected returns of 1 2 % and 1 4 % , respectively. The risk

Consider the single-factor APT. Stocks A and B have expected returns of 12% and 14%,respectively. The risk-free rate of return is 5%. Stock B has a beta of 1.2. If arbitrage opportunities are ruled out, what is the beta of stock A?

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