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You are a money manager of French stocks. Your research department prepared the table below. According to the domestic CAPM for French securities, which stocks

You are a money manager of French stocks. Your research department prepared the table below. According to the domestic CAPM for French securities, which stocks would you recommend for purchase and sale?

Security Risk-Free Rate () French Market PARIHO SPOUTNIK KLUB POUPOU Forecasted Return () 10% 15% 12% 20% 8% 14% Domestic Beta 0 1 0.7 1.5 1.2 0.8

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