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Question 7.(10 marks) (a) If you were given the following information and were asked to determine which asset gives the best investment opportunity based on

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Question 7.(10 marks) (a) If you were given the following information and were asked to determine which asset gives the best investment opportunity based on the calculated rate of return on asset? Risk Free Rate 4.5% Market Rate of Return 7.5% Stock Bitcoin Mining LLC Sun Energy Inc. Gone-Green Corp Reenergize Fossil Ltd Beta Value 1.3 1.0 1.9 0 (b) (0) How does the rate of return on these four companies stock compare to the market rate and the risk-free rate? (i) Which of the investments would you opt not to invest but instead purchase government bonds? (ii) What can you deduce about the relationship between the return on an asset and the market rate or free interest rate when beta of the asset is 1 and O respectively

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