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Suppose you are a risk-averse investor. Which of the following two stocks would you choose to hold as part of a well-diversified portfolio if the
Suppose you are a risk-averse investor. Which of the following two stocks would you choose to hold as part of a well-diversified portfolio if the return on the market is 12% and the risk-free rate is 2%
Stock | Expected return | Beta |
Super Grocer | 15% | 1.2 |
Hail A Ride Tech | 26% | 2.5 |
Super Grocer | |
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Hail A Ride Tech
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I would be indifferent between these 2 stocks.
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Cannot be determined with the given information.
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