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Security a Has an Expected Rate of Return of 22

question 1

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Security A has an expected rate of return of 22% and a beta of 2.5.Security B has a beta of 1.20.If the Treasury bill rate is 10%,what is the expected rate of return for security B?


Definitions:

Product Line

A collection of interconnected products sold under a unified brand name by the same company.

Product Item

A specific version of a product that has a unique identifier, packaging, price, or quality.

Glad Products

A brand name associated primarily with trash bags and food storage containers, known for its range of plastic products.

Product Line

A group of related products marketed by a company, often sharing a common brand, target market, or utilitarian function.

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