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Problem 8 You are given the following information about a stock X: i) The stock has a Sharpe ratio of 0.4. ii) Its correlation with

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Problem 8 You are given the following information about a stock X: i) The stock has a Sharpe ratio of 0.4. ii) Its correlation with the market is 0.7. iii) The stocks volatility is 35%. Suppose that the Sharpe ratio for the market is 0.5. Calculate alpha for the stock X

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