Homework Answers
Solution :- We can Choose Value Corp.
Beta is a measure of Risk . Means higher the beta Higher the risk
Beta = Change in Security / Change in Market Return
As we see in both Companies the return is same but the beta is different of each company
So we can choose the company that has lower beta that is Value Corp.
As we see the return of both companies are same then why we take high risk . We can take risk low as much as possible for same return so We choose to invest in Value Corp.
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