Last year, Rocket Inc. earned a 20% return. Farmers Corp. earned 10%. The overall market return last

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Last year, Rocket Inc. earned a 20% return. Farmer’s Corp. earned 10%. The overall market return last year was 16%, and the risk-free rate was 2%. If Rocket stock has a beta of 2.0 and Farmer’s has a beta of 0.5, which stock performed better once you take risk into account?

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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