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1.Expected return on the market portfolio is 7%, the standard deviation of returns on the market portfolio is 10% and the risk-free rate is 2%.
1.Expected return on the market portfolio is 7%, the standard deviation of returns on the market portfolio is 10% and the risk-free rate is 2%. Which stocks are going to be on the buy-lists and which are going to be on the sell-list? And Why? (Assume that CAPM works) A.Expected return 12%, volatility 19%, beta 1.36 B. Expected return 10%, volatility 46%, beta 2.15 C. Expected return 7%, volatility 24%, beta 0.88 D.Expected return 5%, volatility 34%, beta 1.26
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