Jay is reviewing his portfolio of investments, which include certain stocks and bonds. He has a large

Question:

Jay is reviewing his of investments, which include certain and bonds. He has a large amount tied up in U.S. Treasury bills paying 3%. He is considering moving some of his funds from the T-bills into a stock. The stock has a beta of 1.25. If Jay expects a return of 14% from the stock (a little better than the current market return of 13%), should he buy the stock or leave his funds in the T-bill?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...