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Information about Asset A and the Market Portfolio is set out below: Asset/Portfolio Expected return Standard deviation Asset A 26% Market Portfolio 10% 10% Risk-free
Information about Asset A and the Market Portfolio is set out below: Asset/Portfolio Expected return Standard deviation Asset A 26% Market Portfolio 10% 10% Risk-free Asset 4% 0% The correlation between Asset A and the Market Portfolio is 0.3. According to the CAPM, what is the expected return of Asset A? Write your answer in percent to one decimal place. For example if your answer is 8.37% you should insert 8.4
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