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Which stock should you buy and why

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Question: Referring to Problem, if you expect a significant market slump, would your decision be altered? Explain.

Problem: You are evaluating two possible stock investments, Leverage Co. and Value Corp. Leverage Co. has an expected return of 10% and a beta of 1.4. Value Corp. has an expected return of 10% and a beta of 0.9. Based only on this data, which stock should you buy and why?

Reference no: EM131624413

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