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I just need the second part to question 5 answered. And can you check my work to see if I answered the rest of the
I just need the second part to question 5 answered. And can you check my work to see if I answered the rest of the questions correctly, please? Thank you!
1) What is the expected return on Stock A across all market situations? 10% What is the expected return on Stock B across all market situations? 7% 2) What is the standard deviation of Stock A s return? 16.11 What is the standard deviation of Stock B's return? 7.44 3) With a mix of 75% Stock A and 25% Stock B what is the portfolio return? 9.25% With a mix of 75% Stock A and 25% Stock B what is the portfolio standard deviation? 13.94% 4) Which of the two stocks has higher total risk? Stock A Which of the two stocks has higher systematic risk? Stock A 5) Which of the two stocks has a higher Reward-to-Risk Ratio? Stock B Are the two stocks under or over-valued based on the Capital asset Pricing Model? 6) What return would you expect on each stock based on the Capital Asset Pricing Model? Stock A=10% Stock B=9.25%Step by Step Solution
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