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I could not copy and paste, this was the best option. I would like help on these questions if you can and have finance knowledge

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I could not copy and paste, this was the best option. I would like help on these questions if you can and have finance knowledge and/or experience. Thank you.

image text in transcribed
7. You have been provided the following data on the securities of three firms and the market: Security E[Ri] PiM Bi Firm A 0.13 -12 90 Firm B 0.16 0.40 1.10 Firm C 0.25 0.24 0.75 ? Market 0.15 0.10 Risk-free 0.05 ? 2 Assume the CAPM holds true. a. Fill in the missing values in the table. b. What is your investment recommendation on each asset? Buy or sell? C. "Suppose that you are currently holding a portfolio consisting of Firm B only. If you increase your portfolio weight on Firm B by 0.2 (or 20%) and borrow the needed money at the risk-free rate, what will be the ned withnew standard deviation of your portfolio? Scanner

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