Last year, Rocket Inc. earned a 20% return. Farmers Corp. earned 10%. The overall market return last

Question:

Last year, Rocket Inc. earned a 20% return. Farmer’s Corp. earned 10%. The overall market return last year was 16%, and the risk-free rate was 2%. If Rocket stock has a beta of 2.0 and Farmer’s has a beta of 0.5, which stock performed better once you take risk into account?

Fantastic news! We've Found the answer you've been seeking!