Problem $11-08$ beta coefficient of firm B is $1\mathrm{.}57.$ growth model? Do not round intermediate calculations. Round your answers to two decimal places.

Stock A: $

Stock B: $

b$.$ Why are your valuations different?

The beta coefficient of is higher, which indicates the stock's return is $|$ volatile.

c$.$ If stock A$\text{'}$s price were $$35$ and stock B$\text{'}$s price were $$54,$ what would you do$?$

Stock $A$ is and be purchased.

Stock $B$ is and be purchased.