Question: please fast Stock A has an expected return E (R)of 12% and a Beta of 1.1. Stock B has an expected return E(R) of 28%
Stock A has an expected return E (R)of 12% and a Beta of 1.1. Stock B has an expected return E(R) of 28% and a Beta of 1.8. The risk-free rate is 3%. a) What is the risk premium of Stock A? b) What is the risk premium of Stock B? c) Which stock represents the "better" investment? EXPLAIN
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