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tetleyelmo tetleyelmo
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7 years ago
Asset   Expected Return   Beta
Stock A   9%   0.9
Stock B   11%   1.4
Risk-Free Asset   5%   

Consider the assets outlined in the table above. Which asset offers the best risk-return trade-off?
A) Stock A
B) Stock B
C) The risk-free asset
D) Either Stock A or Stock B as both have the same risk-return trade-off
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
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BlimpBlimp
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Posts: 499
7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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