Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 17.18%. The stock has a beta of 1.7. If the market risk premium is 8.71%, what is the implied risk-free rate of return?



2) USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Asset (A)              Asset (B)

E(RA) = 14%         E(RB) = 16%

(σA) = 13%            (σB) = 18%

WA = 0.4              WB = 0.6

COVA,B = 0.0024

What is the standard deviation of this portfolio?

Neuvac Corp. common stock has an expected return of 18% and a standard deviation of 8%. The market has an expected return of 8% and a standard deviation of 7%. If the stock's returns and the market's returns have a correlation coefficient of 0.37, what is Neuvac's beta?