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GOOG has bet of 1.2 and AAPL has beta of 0.9. The market risk premium is 8% and the risk free rate is 3%. You
GOOG has bet of 1.2 and AAPL has beta of 0.9. The market risk premium is 8% and the risk free rate is 3%. You estimated that GOOG's stock price will growth to $1210 a share next year, from the current level of $1080. You also estimated that AAPL stock price will be $260 next year, where it is $230 currently. GOOG pays no dividend and AAPL will pay $5 in dividend next year. Should you buy/short either of these stocks?
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