Question: Stock A, B = 1.75 Stock B; B = 1.55 Stock C; B= 1.33 Expected return for the equity market = 8% Current yield on

Stock A, B = 1.75 Stock B; B = 1.55 Stock

Stock A, B = 1.75 Stock B; B = 1.55 Stock C; B= 1.33 Expected return for the equity market = 8% Current yield on short term US Government Debt = 2.43% 13. Using SML/CAPM, where should you expect the highest return? A. Stock A B. Stock B C. Stock C D. The equity market E. Short term US government debt

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