Which firm will have higher expected return? Firm A or C? Why?
1. Use the following information to answer the questions. Security Beta Standard deviation Expected return Market Risk-free Firm A Firm B Firm C 1.0 0.0 1.5 ( ) 2.0 10% 2% 30% 20% 25% 6.0% 3.0% ( )% 4.5% ( )% 1) Figure out the expected return for Firm A. (20points) 2) Figure out the […]