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Reviewing portfolio of? investments

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Jay is reviewing his portfolio of? investments, which include certain stocks and bonds. He has a large amount tied up in U.S. Treasury bills paying 3.2%. He is considering moving some of his funds from the? T-bills into a stock. The stock has a beta of 1.25. If Jay expects a return of 14.9% from the stock? (a little better than the current market return of 12.9%?), should he buy the stock or leave his funds in the? T-bill?

Reference no: EM133119930

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