MathHelp795 MathHelp795

21-12-2022
Business

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mr. griffindor is an investor who uses the security market line to determine whether securities are properly valued. he is evaluating the stocks of two companies, mia shoes and video systems. the stock of mia shoes is currently trading at $15 per share, and the stock of video systems is currently trading at $18 per share. green expects the prices of both stocks to increase by $2 in a year. neither company pays dividends. mia shoes has a beta of 0.9 and video systems has a beta of (-0.30). if the market return is 15% and the risk-free rate is 8%, which trading strategy will green employ? mia shoes (m) and video systems (v)

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