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You Believe That Alpha Stock Which Has a Beta of 1.32

question 73

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You believe that Alpha stock which has a beta of 1.32 will return 16.0% this coming year.The market is expected to return 11.4% and T-bills return 3.8%.According to CAPM,which one of these statements is correct given this information?


Definitions:

Product Or Idea

A specific good, service, or concept that is developed for sale or to solve a problem.

Blendtec

A company known for its high-quality blenders and part of a viral marketing campaign where they blend various items to showcase the power and durability of their products.

Guerrilla Marketing

An advertising strategy that focuses on low-cost, unconventional methods aimed at obtaining maximum exposure for a product or brand.

YouTube

A digital platform that allows users to upload, share, and view videos.

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