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You expect the risk-free rate to be 3 per cent and the market return to be 10 per cent. You also have the following information

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You expect the risk-free rate to be 3 per cent and the market return to be 10 per cent. You also have the following information about three shares. Current Expected Expected Dividend Share Beta Price Price X 2.5 $15 $1.5 $12 $14 $0.5 Y 1.0 $16 $17 Z $1.5 1.5 $16 Using the CAPM, what is your investment strategy about stocks X, Y, and Z? Buy X, Y and Z Sell Y and Z. buy X Sell X and Z. buy Y Sell X, Y and Z

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