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Assume that the Sharpe ratio for the market is 0.51. Stock XYZ has a correlation of 0.29 with the market, and a volatility of 0.44.
Assume that the Sharpe ratio for the market is 0.51. Stock XYZ has a correlation of 0.29 with the market, and a volatility of 0.44. Assuming CAPM, calculate Stock XYZ's risk premium. 7.16% 6.83% 6.51% 6.18% 7.48%
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