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Business, 29.06.2021 17:30 Requiem3327

You are given two companies. Company A is expected to return 10% with standard deviation of 23%. The beta of Company A is 1.75. Company B is expected to return 15% with a standard deviation of 10%. The beta of Company B is 2. The market risk premium is 6% and the risk-free rate is 1%. Using Capital Asset Pricing Model (CAPM), will you invest in the companies

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