Question
Assume that the risk free rate of return is 8%, the market expected rate of return is 12%. The standard deviation of the market return
Assume that the risk free rate of return is 8%, the market expected rate of return is 12%. The standard deviation of the market return is 2% while the co-variance of return for security A and the market is 2%.
REQUIRED:
What is the required rate of return on Security A?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
