Question
Assume that expected market return is 13.4% and the volatility of the market return is 20%. A certain stock has a volatility of 43%
Assume that expected market return is 13.4% and the volatility of the market return is 20%. A certain stock has a volatility of 43% and a correlation of 0.52 with the market. The risk-free rate is 1.4%. Use CAPM to determine the stock's expected return.
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Statistics For Business And Economics
Authors: James T. McClave, P. George Benson, Terry T Sincich
12th Edition
032182623X, 978-0134189888, 134189884, 978-0321826237
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