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a) You are given the following information about Stock X, Stock Y, and the market: - The expected return and volatility for Stock X, Stock
a) You are given the following information about Stock X, Stock Y, and the market: - The expected return and volatility for Stock X, Stock Y, and the market are shown in the table below: - The correlation between the returns of stock X and the market is 0.25. - The correlation between the returns of stock Y and the market is 0.30. Assume the Capital Asset Pricing Model holds. Calculate the required return for Stock Y. (7 marks)
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