What would you recommend concerning these two stocks

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The market portfolio has expected return of 11% and risk free rate is 3.5%. You estimated that IBM's stock price will be $185 by the end of next year and the company will pay $5 in dividend. The beta for IBM is 1.2. You also estimated that AAPL's stock price will be $135 next year and AAPL will pay $3 in dividend for the next twelve months, and the beta for AAPL is 0.95. The current price for IBM is $170 and AAPL is $125. What would you recommend concerning these two stocks?

Reference no: EM132185088

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