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QUESTION
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.
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?
