Investment into the stock portfolio

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If the expected rate or return (IRR) from expanding the existing business is 8% and the firm's WACC is 6%, we would all agree that the expansion is expected to be value enhancing. If the same firm invests in a stock portfolio with the same expected return as expansion (8%), would you expect this investment into the stock portfolio to be a value enhancing investment? Explain!

Reference no: EM133113773

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