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The average risk aversion in Canadian market is 5. The total standard deviation of the market is calculated to be approximately 17%. Based on your

The average risk aversion in Canadian market is 5. The total standard deviation of the market is calculated to be approximately 17%. Based on your analysis, Bombardier stocks with Beta=1.1 have an expected return of 14% and Air Canada's shares with Beta=0.9 have an expected return of 12%. Which security is a good investment and why? Justify your Answer!

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