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Consider a stock with the following characteristics: The standard deviation of its annual returns: 5 2 . 9 % . The correlation between the returns
Consider a stock with the following characteristics:
The standard deviation of its annual returns:
The correlation between the returns of the stock and the market:
If the riskfree rate is expected market return is and the standard deviation of market returns is what is this stock's expected return according to the CAPM? Answer in percent showing one decimal place.
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