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3. You arrive late for class and all you see on the board is the following teble, with some missing information (cells with a question

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3. You arrive late for class and all you see on the board is the following teble, with some missing information (cells with a question mark) Asset CAPM Correlation with Beta retum the market Volatility A 10% 0.8 ? 50% B 14% ? 0.75 2 Risk-free asset ? 0 0 0 Market portfolio 11.75% ? 1 20% a Fill in the missing information, that is compute the correlation with the market for stock A, the beta and volatility for stock B, the risk-free rate and the beta of the market portfolio. b. Suppose you learn that stock B has an expected return of 13.5%. Is this stock correctly priced, underpriced or overpriced? Briefly justify your

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