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Assume that the Sharpe ratio for the market is 0.68. Stock XYZ has a correlation of 0.23 with the market, and a volatility of 0.39.
Assume that the Sharpe ratio for the market is 0.68. Stock XYZ has a correlation of 0.23 with the market, and a volatility of 0.39. Assuming CAPM, calculate Stock XYZ's risk premium. 6.10% 5.79% 7.01% 6.40% 6.71%
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