4- Consider the following table, which gives a security analyst's expected return on two stocks for...
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4- Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 5% 25 Aggressive Stock Defensive Stock -2% 6% 38 12 What are the bees of the two stacks? e. What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm's stock? 4- Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 5% 25 Aggressive Stock Defensive Stock -2% 6% 38 12 What are the bees of the two stacks? e. What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm's stock?
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