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please solve it ASAP I do not have much time Question 15 1 pts Suppose you estimate that stock A has a volatility of 20%
please solve it ASAP I do not have much time
Question 15 1 pts Suppose you estimate that stock A has a volatility of 20% and a beta of 1.4, whereas stock B has a volatility of 60% and a beta of 0.8. The market's expected return is 8% and the risk-free rate is 1%. Select ALL of the below statements that are TRUE. If your estimate of stock A's expected return is 11%, then the estimate is below the Security Market Line. If your estimate of stock B's expected return is 6%, then the estimate is below the Security Market Line. If your estimate of stock A's expected return is 11%, then stock A is underpriced. If your estimate of stock B's expected return is 6%, then stock B is underpriced. Question 16 1 pts Suppose that the risk-free rate is 1%, the market portfolio has an expected return of 9% and a return volatility of 22%. The HND stock return has a 36% volatility and a correlation with the market return of 0.91. What is the beta of the HND stockStep by Step Solution
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