Question
Given the following information on 3 stocks: Stock A Stock B Stock C T- Bills Market Port Exp. Return .19 .15 .09 .07 .18 Variance
Given the following information on 3 stocks:
| Stock A | Stock B | Stock C | T- Bills | Market Port | |
| Exp. Return | .19 | .15 | .09 | .07 | .18 |
| Variance | .0200 | .1196 | .0205 | .0000 | .0064 |
| Covariance with Mkt Portfolio | .007 | .0045 | .0013 | .0000 | .0064 |
Using the CAPM, calculate the expected return for Stock's A, B, and C. Which stocks would you recommend purchasing?Short Answer
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The Handbook Of Portfolio Mathematics
Authors: Vince
1st Edition
0471757683, 978-0471757689
