Best investment
Not what you're looking for?
You have been scouring The Wall Street Journal looking for stocks that are 'good values' and have found the following five candidates for addition to your portfolio:
Stock Expected Return Beta
A 11.00% 1.1
B 7.00% 1.0
C 10.50% 1.4
D 5.00% 0.8
E 11.50% 0.7
However, you can afford to buy only one of these stocks. Based solely on the stocks' expected returns and risk, as measured by Beta, which one represents the best investment? Be sure to justify your answer.
Purchase this Solution
Solution Summary
The solution explains how to choose the best investment based on beta and expected return. The Wall Street Journal is examined.
Solution Preview
Beta is a measure of risk and higher the beta, higher should be the return based on ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking