Your friend at Goldman comes to you with an interesting proposition: she's working on the IPO of a company that she thinks is going to earn a 1,005% annual return for its first year after IPO. With all her wisdom and expertise from studying companies, stocks, and IPOs at Goldman, you decide her calculations are sound. She wants to know if you would like to invest in the company. Suppose the risk free rate is about 5% and the market return is typically about 15% and expected to remain so.What would the CAPM, the APT, and your combined wisdom from this course tell you about participating in this investment? Should you expect to beat the market, on a risk-adjusted basis, if you invest? (Hint: your one-sentence answer should involve, and probably focus on, the word "beta.") For bonus points: could you find an investment that would have the same performance characteristics without using this company's stock at all?