Question: Its investment analysis subject question. Question : Redesign Corp is considering a new strategy that would increase its expected return from 12% to 13.9%, but

Its investment analysis subject question.

Question :

Redesign Corp is considering a new strategy that would increase its expected return from 12% to 13.9%, but would also increase its beta from 1.2 to 1.8. If the risk free rate is 5% and the return on the market is expected to be 10%, should Redesign change its strategy?

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