Question: Based on monthly returns from 1990 -2019, beta is estimated to be 1.49 (std err = 0.18) for IBM and 0.81 (std err = 0.14)

Based on monthly returns from 1990 -2019, beta is estimated to be 1.49 (std err = 0.18) for IBM and 0.81 (std err = 0.14) for Asus. If these estimates are reliable:

a. What expected rate of return should you require for holding Asus's stock?

Based on monthly returns from 1990 -2019, beta is estimated to be 1.49 (std err = 0.18) for IBM and 0.81 (std err = 0.14) for Asus. If these estimates are reliable:

b. What expected rate of return should you require for holding IBM's stock?

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