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Author Question: You have been scouringThe Wall Street Journallooking for stocks to add to your (large) portfolio. ... (Read 46 times)

TFauchery

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You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. The table presents data that you have collected on four stocks that look promising. You have calculated the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? (Assume you must choose just one.) Assume the risk-free rate is 7.00% and the market risk premium is 2.00%.

StockAnticipated ReturnBeta
A9.01%1.70
B7.06%0.00
C8.74%0.87
D11.50%2.50

◦ Stock A
◦ Stock B
◦ Stock C
◦ Stock D


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Marked as best answer by TFauchery on Apr 25, 2021

angrybirds13579

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TFauchery

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


raili21

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Reply 3 on: Yesterday
:D TYSM

 

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