Question
Given a Sharpe ratio for the market portfolio of 0.40, calculate the expected return on a stock with a standard deviation of returns of 0.50
Given a Sharpe ratio for the market portfolio of 0.40, calculate the expected return on a stock with a standard deviation of returns of 0.50 and a correlation with the market portfolio returns of 0.6. The risk-free rate is 5% and the standard deviation of the market portfolio returns is 0.25.
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
