stock expected return beta a 9.01% 1.7 b 7.06% 0.0 c 5.04% 0.67 d 8.74% 0.87 e 11.5% 2.0 Assume the risk-free rate (kRF) is 7%. and the market risk premium is (kM-kRF) is 2%. Which security is best for investment? why? plss show formula and solution not in spreadsheet form
stock expected return beta a 9.01% 1.7 b 7.06% 0.0 c 5.04% 0.67 d 8.74% 0.87 e 11.5% 2.0 Assume the risk-free rate (kRF) is 7%. and the market risk premium is (kM-kRF) is 2%. Which security is best for investment? why? plss show formula and solution not in spreadsheet form
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
stock | expected return | beta |
a | 9.01% | 1.7 |
b | 7.06% | 0.0 |
c | 5.04% | 0.67 |
d | 8.74% | 0.87 |
e | 11.5% | 2.0 |
Assume the risk-free rate (kRF) is 7%. and the market risk premium is (kM-kRF) is 2%.
Which security is best for investment? why?
plss show formula and solution not in spreadsheet form
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