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28. Suppose the risk-free return is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Suppose Loblaw

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28. Suppose the risk-free return is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Suppose Loblaw Companies Limited stock has a beta of 0.32. What is its expected return? 29. What is the sign of the risk premium of a negative beta stock? Explain. (Assume the risk premium of the market portfolio is positive.)

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