Question
Your friend Mr Alex is considering investing in the stock of Metal Ltd. Alex expects Metal to earn a return of 16%. The risk-free rate
Your friend Mr Alex is considering investing in the stock of Metal Ltd. Alex expects Metal to earn a return of 16%. The risk-free rate is 4%, and the market rate of return is 12%. As a financial analyst, you know that Metals beta is 1.30. Do you think your friend Alex should invest in Metals stock?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
