Question: exceeds or does not exceed; should or should not Jay is reviewing his portfolio of investments, which include certain stocks and bonds. He has a

exceeds or does not exceed; should or should not Jay is

exceeds or does not exceed; should or should not

Jay is reviewing his portfolio of investments, which include certain stocks and bonds. He has a large amount tied up in U.S. Treasury bills paying 3.4%. 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 14.9% from the stock (a little better than the current market return of 12.2%), should he buy the stock or leave his funds in the T-bill? The stock's required rate of return is %. (Round to one decimal place.) Should Jay buy the stock or leave his funds in the T-bill? (Select from the drop-down menus.) Since Jay's required rate of return the expected return, he buy the stock

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