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Suppose the risk free interest rate is 3% and the return on the market portfolio of stocks is 8%. The alpha company has beta of

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Suppose the risk free interest rate is 3% and the return on the market portfolio of stocks is 8%. The alpha company has beta of 1.5 has beta of.75. Your brother-in-law tells you that next year Alpha will return 11% and Zulu will return 6%. If you believe your brother-in-law you should Buy alpha and short zulu O Buy zulu and alpha Short alpha and buy Zulu Short both stocks O None of these other answers are correct

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