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Consider the following information in answering the next two questions: Forecasted return Stock X 16.25% Stock Y 17.35 Market index 12.50 Risk-free rate 3.00 Standard
Consider the following information in answering the next two questions: Forecasted return Stock X 16.25% Stock Y 17.35 Market index 12.50 Risk-free rate 3.00 Standard deviation 23.00 25.00 14.00 Beta 1.4 1.5 1.0 1) Which investment would be more appropriate for an investor who wants to add this investment to a well-diversified equity portfolio? A. Stock X B. Stock Y C. Risk free asset D. Market portfolio 2) [Using information provided above, answer the following question. Which stock would be more appropriate for an investor who wants to hold this stock as a single-stock portfolio? A) Stock X B) Stock Y EPS) of $250 nervear after
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