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aestion four (Amarks) azeera Inc. common stock has a covariance of 1.7 The expected return on arket is 14% and the variance of the return
aestion four (Amarks) azeera Inc. common stock has a covariance of 1.7 The expected return on arket is 14% and the variance of the return on the market portfolio is 2.25 me, the risk-free rate is 5%. Aljazeera common stock is actually expected to annual rate of return of 10%. a. Would you recommend this investment? Why or why not? b. Assume that recent economic events have made investors me averse, causing the market return to rise by 196, what impac required rate of return for common stock aestion four (Amarks) azeera Inc. common stock has a covariance of 1.7 The expected return on arket is 14% and the variance of the return on the market portfolio is 2.25 me, the risk-free rate is 5%. Aljazeera common stock is actually expected to annual rate of return of 10%. a. Would you recommend this investment? Why or why not? b. Assume that recent economic events have made investors me averse, causing the market return to rise by 196, what impac required rate of return for common stock
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