Question: Please help me solve this question: The risk-free rate is 2%. Stock A is expected return is 18% with a beta of 1.7 Stock B
Please help me solve this question:
The risk-free rate is 2%. Stock A is expected return is 18% with a beta of 1.7 Stock B expected return is 15% with a beta of 1.3. What is the risk-reward ratio of each and which is the better choice of ignoring the investor risk preference?
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