Question
Stock A has a beta of 1.3 and an expected return of 11%. Stock B has a beta of 0.7 and an expected return of
Stock A has a beta of 1.3 and an expected return of 11%. Stock B has a beta of 0.7 and an expected return of 6%. If the risk-free rate is 2% and the market risk premium is 8%, what is true about the two stocks?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
