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market index and the two companies exhibit the following return profile: CIN Year 2010 2011 2012 2013 0.20 0.05 0.12 Cruise 0.19 0.07 0.03 0.13
market index and the two companies exhibit the following return profile: CIN Year 2010 2011 2012 2013 0.20 0.05 0.12 Cruise 0.19 0.07 0.03 0.13 0.47 0.18 0.15 002 The standard deviation of the CINI Cruise, Energy) is 0.0967 (0.1186, 0.2274). The covariance of Ocean Cruise (Clear Water Energy) and the CINSE is 0.0097 0.02.19). The risk-free interest rate is 5.0%. both assets are listed on the CIN camongst others 7.1 (7 Points) What are the expected returns of the two stocks according to CAPM? I know how w to do this 7.2 (3 Points) . Please determine the systematic and idiosyncratic risk of Asset 1. Need Help here
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