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Consider two stocks, namely Stock A and Stock B . Their expected returns and volatilities are listed below: Stock A: Expected returns, 8 % ,
Consider two stocks, namely Stock A and Stock B Their expected returns and volatilities are listed below:
Stock A: Expected returns, and Volatility of
Stock B: Expected returns of and volatility of
Also, assume that the riskfree rate is Rf and the correlation between the two stocks equals If CAPM holds and only Stock A and B are available in this economy, what is the composition of the market portfolio weight on Stock A weight on Stock B
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