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The two stocks are Microsoft and AMD Are they large stocks (large market cap, usually greater than 10 billion)? Are they growth stocks (high P/E
The two stocks are Microsoft and AMD
Are they large stocks (large market cap, usually greater than 10 billion)? Are they growth stocks (high P/E and P/S ratios)? Are they hot stocks (relative high past 6 month return and past 12 month return)?
Use CAPM model to calculate the alpha of each stock. alpha needed for Microsoft and AMD
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