Stock a is a risky asset that has a beta of 14 and an, Financial Management

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Stock a is a risky asset that has a beta of 14 and an

Stock A is a risky asset that has a beta of 1.4 and an expected return of 13.2 percent. Stock B is also a risky asset and has a beta of 1.25. The risk-free rate is 5.5 percent. Assuming both stocks are correctly priced, what is the expected return on stock B?

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