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You have the following information on a set of investments. Using the SML, which would be considered good investments? Expected Beta Return Company A 0.75
You have the following information on a set of investments. Using the SML, which would be considered good investments?
| Expected | |||
| Beta | Return | ||
| Company A | 0.75 | 8.50% | |
| Company B | 1.1 | 9.75% | |
| Company C | 0.95 | 8.10% | |
| Company D | 1.25 | 11.50% | |
| Risk free rate of return | 3.75% | ||
| Required return on market | 9.25% | ||
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
