Question
Two shares are publicly traded, share A and share B. Share A has a beta of 2,00 and share B has a beta of 1,50.
Two shares are publicly traded, share A and share B. Share A has a beta of 2,00 and share B has a beta of 1,50. Over the past year, share A has realised a return of 20% whereas share B has realised only 14%. If you are risk averse and consider only the risk involved for the two shares, which one would you choose? Choice
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
