Question: Suppose that for asset A: E(RA) = 12% and Beta of A = 1.2 Suppose that for asset B: E(RB) = 15% and Beta
Suppose that for asset A: E(RA) = 12% and Beta of A = 1.2 Suppose that for asset B: E(RB) = 15% and Beta of B = 2.4 The risk free rate is 3%. Which investment is better, asset A or asset B and why? OA. Asset A is better because its reward to risk ratio is greater than asset B OB. Asset A is better because its reward to risk ratio is less than asset B OC.Asset B is better because its reward to risk ratio is greater than asset A D. Asset B is better because its reward to risk ratio is less than asset A
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