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You Are a Money Manager of French Stocks

Question 6

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You are a money manager of French stocks. Your research department prepared the table below. According to the domestic CAPM for French securities, which stocks would you recommend for purchase and sale?
 Domasic  Security  Forec-asted Return (€)  Beta  Risk-Free Rate (€) 10%0 French Market 15%1 PARIHO 12%0.7 SPOUTNIK 20%1.5 KLUB 9%1.2 POUPOU 14%0.8\begin{array} { l c c } & & \text { Domasic } \\\text { Security } & \text { Forec-asted Return (€) } & \text { Beta } \\\hline \text { Risk-Free Rate (€) } & 10 \% &0\\\text { French Market } & 15 \% & 1 \\\text { PARIHO } & 12 \% & 0 .7 \\\text { SPOUTNIK } & 20 \% & 1.5 \\\text { KLUB } & 9 \% & 1.2 \\\text { POUPOU } & 14 \% & 0.8\end{array}

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