4

S 4 of 15 %. 3 Stock X has a standard deviation of 25% and a correlation coefficient of 0.7 with market returns. The expected retum of the market is 13% with a standard deviation of 15%. The risk-free rate is 3.4%. What is the required return of Stock X? The required return of Stock X is (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer)