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ii . The current price of a share of stock in the Spianata and Co . company in Italy is 5 0 Euros and its

ii. The current price of a share of stock in the Spianata and Co. company in Italy is 50 Euros and its expected yield over the year is 14%. The market risk premium in Italy is 8% and the riskless interest rate is 6%. What would happen to the stock's current price if its expected future payout remains constant while the covariance of its rate of return with the market portfolio falls by 50%?
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