The return on the Tarheel Corportation stock is expected to be 14 percent with a standard deviation
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Question:
The return on the Tarheel Corportation stock is expected to be 14 percent with a standard deviation of 8 percent. The beta of Tarheel is .8. The risk-free rate is 7 percent, and the expected return on the market portfolio is 15 percent.
What is the probability that an investor in Tarheel will earn a rate of return less than the required rate of return?
Assume that the returns are normally distributed
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