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assume the CAPM holds. you are given the following information about 2 stocks: Expected Return Standard Deviation Beta A 10% 40% 1.0 B 14% 50%

assume the CAPM holds. you are given the following information about 2 stocks: Expected Return Standard Deviation Beta A 10% 40% 1.0 B 14% 50% 1.5 the correlation between the returns on the stocks is 0.3 ( = 0.3). what is the expected return on an asset with a beta of 0.6

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