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An investor is interested in a stock A in the stock market. However, he is unknown about the stock A's fairly valued when its risk
An investor is interested in a stock A in the stock market. However, he is unknown about the stock A's fairly valued when its risk is compared to its expected return. As a portfolio manager, you are requested to address his problem by providing a simple report using the following information: Larm Use the table above to find the 1. The expected return for stock and market. 2. The stock's variance, market's variance, and the co-variance stock, market- 3. The risk free, i.e., i, and the beta, i.e., ir l.e1 4. Ri=i+iRm+i 5. The correlation coefficient (r)
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