What is the most profitable investment strategy

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Reference no: EM132994022

Problem - You expect the risk-free rate to be 4% and the market return to be 11%. You also have the following information about three stocks:

Share

Beta

Current Price

Expected Price

Expected Dividend

X

1.4

$17

$18

$0.5

Y

1.8

$18

$20

$0.3

Z

2.2

$21

$23

$0.0

Required - What is the most profitable investment strategy concerning the three shares?

Reference no: EM132994022

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