Question
You are analyzing XCEL Corporations stock that has a beta of 1.3, the risk-free rate is 3.5% and you estimate the return from the market
You are analyzing XCEL Corporations stock that has a beta of 1.3, the risk-free rate is 3.5% and you estimate the return from the market to be 11.5%. If you expect XCEL Corporations stock to have a return of 12% over the next year, should you buy it? Why or why not?
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The Handbook Of Energy Trading
Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli
1st Edition
1119953693, 978-1119953692
