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borteleto borteleto
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6 years ago
You determine that LMN common stock has an expected return of 24%. LMN has a Beta of 1.5. The risk-free rate is 5%, and the market expected return is 15%. Which of the following is most likely to happen?
A) You and other investors will buy up LMN stock and its price will rise.
B) You and other investors will sell LMN stock and its return will fall.
C) You and other investors will buy up LMN stock and its return will rise.
D) You and other investors will sell LMN stock and its price will fall.
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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Marc18Marc18
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borteleto Author
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