Question
Lets say that you are looking at investing in two Stocks A and B. A has a beta of 1.3 and based on your best
Lets say that you are looking at investing in two Stocks A and B. A has
a beta of 1.3 and based on your best estimates is expected to have a return of 12%.
B has a beta of 0.9 and is expected to earn 9%. If the risk-free rate is currently
4% and the expected return on the market is 11%, determine whether these stocks
are worth investing in. Explain thoroughly all your steps.
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
