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Hello I need help with my finance long discussion. Prompt: An investor A has a well-diversified portfolio. What risk measure is the most relevant in
Hello I need help with my finance long discussion. Prompt: An investor "A" has a well-diversified portfolio. What risk measure is the most relevant in this case, standard deviation or beta? Why? Explain! If risk-free rate is 4% beta of stock ABC is 1.5, and expected return on the market is 8%, what is the required rate of return on stock ABC? Now, assume you expect to realize an annual return of 12% by holding ABC, should you buy it or not, why? Explain. Thank you
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