Question: Last year, Rocket Inc. earned a 18 % return. Farmer's Corp. earned 8 %. The overall market return last year was 15 %, and the

Last year, Rocket Inc. earned a 18 % return. Farmer's Corp. earned 8 %. The overall market return last year was 15 %, and the risk-free rate was 2 %. If Rocket stock has a beta of 1.8 and Farmer's has a beta of 0.5 , which stock performed better once you take risk into account?

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