You are evaluating two possible stock investments , Leverage Co. and Value Corp. Leverage Co. has an expected return of 10 % and a beta of 1.4 . Value Corp , has an expected return of % and a beta of 0.9. Based only on this data , which stock should you buy and why?

If you expect a significant market would your decision be altered ? Explain .

Answer rating: 100% (QA)

Based solely on the given data we can analyze the two stocks based on their expected returns and betas to make an informed decision Leverage Co has an ... View the full answer