Find the expected returns for X and Y using CAMP Moodle

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Question - As you are a security analyst preparing a report for firm's expecting regarding two stocks for the year to come. Your report is to include the expected returns for these stocks and a graph illustrating the expected risk return trade off.

You have been informed that the firm expects the S and P 500 to earn a return of 11% in the year ahead and that the risk free rate is 5%. According to Morningstar, the betas for stocks X and Y are 0.5 and 1.5 respectively.

Required -

1. Find the expected returns for X and Y using CAMP Moodle.

2. In which share that you like to invest your money? Why?

Reference no: EM132815831

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