. An analyst calculates the expected return of the two stocks in comparison to the...

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Accounting

. An analyst calculates the expected return of the two stocks in comparison to the particular market return, as:

Market Return Stock Z Stock Y
5% 3% 10%
20% 25% 20%

a. Calculate the beta of the stocks (5 Marks)

b. What would be the expected return of the two stocks in case there is equal chance of market return to be 5% and 20%

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