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You are evaluating 2 possible stock investments, Buyme Co. and Getit Corp. Buyme Co. has an expected return of 15.3% and a beta of 1.02.
You are evaluating 2 possible stock investments, Buyme Co. and Getit Corp. Buyme Co. has an expected return of 15.3% and a beta of 1.02. Getit Corp. has an expected return of 15.3% and a beta of 1.27. Based only on this data, which stock should you buy and why? If you expected a significant market rally, would your decision be altered? Explain. Based only on this data, which stock should you buy and why? (Select the best choice below.) A. You should buy the Getit Corp. stock because it has a higher expected return than Buyme Co. with less risk (a lower beta). B. You should buy the Buyme Co. stock because it has a higher expected return than Getit Corp. with less risk (a lower beta). C. You should buy the Getit Corp. stock because it has the same expected return as Buyme Co. but with less risk (a lower beta). D. You should buy the Buyme Co. stock because it has the same expected return as Getit Corp. but with less risk (a lower beta). If you expected a significant market rally, would your decision be altered? (Select the best choice below.) A. If you expected a significant market rally, you should buy the Getit Corp. stock because it will provide higher returns as the market rises due to a higher positive beta. B. If you expected a significant market rally, you should buy the Getit Corp. stock because it will provide lower risk as the market rises due to a higher positive beta. O C. If you expected a significant market rally, you should buy the Buyme Co. stock because it will provide lower risk as the market rises due to a lower positive beta. OD. If you expected a significant market rally, you should buy the Buyme Co. stock because it will provide higher returns as the market rises due to a lower positive beta. Click to select your
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