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    Expected and required returns

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    Risk free rate of 7% and market risk premium of 2 %. The best investment of these:
    Expected Return of 9.01 / Beta 1.70
    Expected Return of 7.06 / Beta 0.00
    Expected Return of 5.04 / Beta -0.67
    Expected Return of 8.74 / Beta 0.87
    Expected Return of 11.50 / Beta 2.50

    The 7.06 with Beta of 0.00 is best, but how do I calculate to find this that this is the best?

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    https://brainmass.com/business/beta-and-required-return-of-a-project/expected-required-returns-beta-51006

    Solution Preview

    Risk free rate of 7% and market risk premium of 2 %. The best investment of these:
    We compare the investments as follows
    Expected Return of 9.01 / Beta 1.70 = 9.01/1.70= 8.42
    Expected Return of ...

    Solution Summary

    In just four sentences, the solution provides explanations as well as answers on expected and required returns and beta.

    $2.19

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