What securities does it make sense to buy for an investor

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The average market yield is 10% and the risk-free rate of return is 7%. The investor has the opportunity to invest in five instruments: A shares - having a beta coefficient of 1.12; shares B - with a beta of 0.8; C shares - with a beta of 1.1; D shares - with a beta of 1.5; E shares - with a beta of 1.06. The investor believes that, as a result of investment, he needs to obtain a rate of return of at least 10.5% per annum. What securities does it make sense to buy for an investor?

Reference no: EM133114838

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