You are evaluating 2 possible stock investments, Buyme Co. and Getit Corp. Buyme Co. has an expected

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You are evaluating 2 possible stock investments, Buyme Co. and Getit Corp. Buyme Co. has an expected return of 14% and a beta of 1. Getit Corp. has an expected return of 14% and a beta of 1.2. Based only on this data, which stock should you buy and why?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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