Question: Stocks A , B , and C have identical risks. Stock A earns an annual return of 9 . 9 percent as compared to 9
Stocks A B and C have identical risks. Stock A earns an annual return of percent as compared to percent returns on stocks and Given this, you can correctly assume that:
Stocks B and C represent firms that are in the process of merging
Stock is overpriced.
Stock A represents the smallestsized firm.
the market return is percent.
Stock A has a positive excess return.
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