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(d) Assume that the CAPM holds. Consider two firms X and Y, and the risk-free asset, with the following return characteristics: o cop(r, mt) Er)

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(d) Assume that the CAPM holds. Consider two firms X and Y, and the risk-free asset, with the following return characteristics: o cop(r, mt) Er) 225 200 Y 1600 600 rf 0 5 7.5 What is the expected return of stock Y

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