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There are two securities, each promise to pay $200 in five years. The estimated beta of the first security is 1.5 and the estimated beta
There are two securities, each promise to pay $200 in five years. The estimated beta of the first security is 1.5 and the estimated beta of the second security is 1.0. Which security would you pay more for? a)the second security, since it will be discounted less heavily. b)The second security, since it has the same beta as the market. c)you cannot answer the question from the information given. d) the first security, since it has a higher beta it will have a higher return
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