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13. A portfolio manager is using the CAPM for making recommendations to their clients. (8 points) a. Calculate the expected return according to CAPM and
13. A portfolio manager is using the CAPM for making recommendations to their clients. (8 points) a. Calculate the expected return according to CAPM and the alpha for each stock b. Identify and justify which stock ( X or Y ) should be more appropriate for an investor who wants to: i. Add this stock to a well-diversified equity portfolio ii. Hold this stock as a single-stock portfolio
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