Business and Finance Homework
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According to CAPM, the minimum return is 7.2+2*.8 = 8.8% and maximum return is 7.2+2*1.8 = 10.8%, and the average of both is 8.8+10.8/2 = 9.8%. Keeping in view all these facts it is possible that the XYZ would be able to achieve expected return of around 9.5%, if market performs well, therefore it is not a poor investment, rather it is a good investment. Please rate the answer so I get credit for my efforts, thanks.