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The Uptown investment Club has $50,000 to invest in the equity market. Reward-to-risk ratio. The Uptown Investment Club has $50,000 to invest in the equity

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The Uptown investment Club has $50,000 to invest in the equity market.

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Reward-to-risk ratio. The Uptown Investment Club has $50,000 to invest in the equity market. Chandler advocates investing the funds in Monica's Restaurant with beta of 1.6 and an expected return of 17 2%. Ross advocates investing the funds in Rachel's Clothing Store with a beta of 1.1 and an expected return of 15.6%. Th club is split 50/50 on the two stocks. You are the deciding vote, and you cannot pick a split of $25,000 for each stock. Before you vote, you look up the current risk rate (the one-year U.S. Treasury bill with a yield of 3.50%) Which stock do you select? (Select the best response.) O A. The choice is Monica's Restaurant based on the higher reward-to-risk ratio of 11.00% O B. The choice is Rachel's Clothing Store based on the higher reward-to-risk ratio 8.56% O C. The choice is Rachel's Clothing Store based on the higher reward-to-risk ratio of 11.00% O D. The choice is Monica's Restaurant based on the higher reward-to-risk ratio 13.00% h

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