Question: Using Securities Market Line Equation and given the information below, which of the following stock has the lowest risk? (2 pt.) a. Stock with the
Using Securities Market Line Equation and given the information below, which of the following stock has the lowest risk? (2 pt.)
| a. | Stock with the required rate of return is 5%, the risk free rate is 1.5%, rate of return on market portfolio is 3% | |
| b. | Stock with the required rate of return is 6%, the risk free rate is 1.5%, rate of return on market portfolio is 3% | |
| c. | Stock with the required rate of return is 4%, the risk free rate is 1.5%, rate of return on market portfolio is 7% | |
| d. | Stock with the required rate of return is 7%, the risk free rate is 1.5%, rate of return on market portfolio is 5% |
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