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iv) The finance manager of Superdrug has estimated the rates of return to Superdrug stock, depending on the state of the economy. He has also
iv) The finance manager of Superdrug has estimated the rates of return to Superdrug stock, depending on the state of the economy. He has also compiled analysts' expectations for the economy. (5 marks) Given this data, what are the company's expected return and standard deviation? v) If an asset has a beta of 1.5 , what type of return should it realize compared to the market portfolio using the CAPM equation? What are some drawbacks of CAPM model
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