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Please Show Work. Microsofts stock has a standard deviation of 65% and a correlation with the market portfolio of 0.80. The market portfolio has an
Please Show Work.
Microsofts stock has a standard deviation of 65% and a correlation with the market portfolio of 0.80. The market portfolio has an expected return of 6.5% and a standard deviation of 95%. The risk-free interest rate is 2%. Using the CAPM, the expected return of Microsoft is closest to?
A. 6.50%
B. 2.00%
C. 3.24%
D. 4.46%
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