• Suppose the risk-free return is 4% and the market portfolio has an expected return of 10%. AT&T stock has a beta =0.80 and Apple stock has a beta =1.25.
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•  What are the expected returns of two stocks? Which stock performs better when the market has a positive excess return?

Answer rating: 100% (QA)

The expected return of a stock can be calculated using the Capital Asset Pricing ... View the full answer