Company 1: Expected return = 2.81 + .84 (6.6 – 2.81) = 5.9936 Company 2: Expected return = 2.81 + -.20 (6.6 – 2.81) = 2. | Cheap Nursing Papers
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Company 1: Expected return = 2.81 + .84 (6.6 – 2.81) = 5.9936 Company 2: Expected return = 2.81 + -.20 (6.6 – 2.81) = 2.

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Company 1: Expected return = 2.81 + .84 (6.6 – 2.81) = 5.9936

Company 2: Expected return = 2.81 + -.20 (6.6 – 2.81) = 2.052

When comparing the two companies (above) which one would be the better to invest in? Why?

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