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Please fill in the bottom table fully. Thank you! 7. The Capital Asset Pricing Model and the security market line Wilson holds a portfolio that

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Please fill in the bottom table fully. Thank you!

7. The Capital Asset Pricing Model and the security market line Wilson holds a portfolio that invests equally in three stocks (wA WB wc /3). Each stock is described in the following table Stock Beta Standard Deviation Expected Return 7.5% 0.5 23% B 1.0 38% 12.0% 45% C 2.0 14.0% An analyst has used market and firm-specific information to generate expected return estimates for each stock. The analyst's expected return estimates may or may not equal the stocks' required returns. You've also determined that the risk-free rate [r s 4%, and the market risk premium CRP is 5%. Given this information, use the following graph of the security market line (SML) to plot each stock's beta and expected return on the graph. Tool tip: Mouse over the points on the graph to see their coordinates. Aan A 7. The Capital Asset Pricing Model and the security market line Wilson holds a portfolio that invests equally in three stocks (wA WB wc /3). Each stock is described in the following table Stock Beta Standard Deviation Expected Return 7.5% 0.5 23% B 1.0 38% 12.0% 45% C 2.0 14.0% An analyst has used market and firm-specific information to generate expected return estimates for each stock. The analyst's expected return estimates may or may not equal the stocks' required returns. You've also determined that the risk-free rate [r s 4%, and the market risk premium CRP is 5%. Given this information, use the following graph of the security market line (SML) to plot each stock's beta and expected return on the graph. Tool tip: Mouse over the points on the graph to see their coordinates. Aan A

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