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1 0 . You are evaluating stocks of two companies. Co . A is currently trading at Rs . 3 0 and Company B at

10. You are evaluating stocks of two companies. Co. A is currently trading at Rs.30 and
Company B at Rs.36. You expect that price will increase by Rs.4 next year. Assume
no dividends. A has a beta of 0.9 and B has a beta of -0.3. If the market return is
15%, and risk free rate of return is 8%, how will you make investment decision?

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