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Which stock has the most systematic risk

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Reference no: EM131126406

Consider the following information on Stocks I and II:

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The market risk premium is 8 percent, and the risk-free rate is 5 percent. Which stock has the most systematic risk?

Which one has the most unsystematic risk? Which stock is "riskier"?Explain.

Reference no: EM131126406

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Calculate the required return for each stock is each stock : Wilson's own forecasts of the returns on the two stocks are 13.25 percent for Furhman Labs and 11.25 percent for Garten. Calculate the required return for each stock. Is each stock undervalued, fairly valued, or overvalued?
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Which stock has the most systematic risk : The market risk premium is 8 percent, and the risk-free rate is 5 percent. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is "riskier"?Explain.
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