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Evaluating two possible stock investments

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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? Referring to Problem 5.16, if you expect a significant market would your decision be altered? Explain.

Reference no: EM132757859

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