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1 . You have closely observed stock market returns over the last year, and believe that the annualexpected return of the market portfolio is 1
You have closely observed stock market returns over the last year, and believe that the annualexpected return of the market portfolio is The riskfree rate is and you own a share of stock in a manufacturer of chemicals, Hawkins Labs Inc., which you believe has an expected return of If the stock market ie the market portfolio actually ends up going down by this year, by how much would you expect your share of stock in Hawkins labs to go up or down?
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