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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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