Do you think your friend alex should invest in metals stock

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Question: Your friend Mr Alex is considering investing in the stock of Metal Ltd. Alex expects Metal to earn a return of 16%. The risk-free rate is 4%, and the market rate of return is 12%. As a financial analyst, you know that Metal's beta is 1.30. Do you think your friend Alex should invest in Metal's stock?

Reference no: EM133325649

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