If the expected market rate of return is 0.09 and the risk-free rate is 0.05. And given
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If the expected market rate of return is 0.09 and the risk-free rate is 0.05. And given the following two stocks Katy and Victoria:
Stock | Expected Rate of Return | Beta |
Houston | 0.12 | 0.8 |
Sugar Land | 0.14 | 1.7 |
Which security would be considered the better buy and why?
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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