Your friend is considering investing in portfolio which they expect will generate a return of 14% and has a beta of 1.3. You know that historic expected return for the stock market is 12% and Government of Canada 90-Day treasury bills are currently yielding 1.0%. Explain to your friend why his potential investment is "inefficient".

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The Answer of Your friend is considering investing in portfolio which they expect will generate a return of 14% and has a beta of 1.3. You know that historic expected return for the stock market is 12% and Government of Canada 90-Day treasury bills are currently yielding 1.0%. Explain to your friend why his potential investment is "inefficient".

Your Friend Is Considering Investing in Portfolio Which They Expect