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Given the following information on 3 stocks: Stock Stock Stock T-Market Port A B C Bills Exp. Return 19 .13 .09 .05 .15 Variance

 



Given the following information on 3 stocks: Stock Stock Stock T-Market Port A B C Bills Exp. Return 19 .13 .09 .05 .15 Variance .0200 1196 .0205 .0000 .0064 Covariance with Mkt Portfolio 0.14 .065 .0013 .0000 0.07 Using the CAPM, calculate the expected return for Stock's A, B, and C. Which stocks would you recommend purchasing?

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