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Question 8 (5 marks) Assume that E[R,]=15% (expected return of the market), R, = 5% (risk-free rate of return) and Ow=20% (standard deviation of the

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Question 8 (5 marks) Assume that E[R,]=15% (expected return of the market), R, = 5% (risk-free rate of return) and Ow=20% (standard deviation of the returns of market). Common stock of the Rapid Roller Corporation has E[R] =25% and o* = 52%. a) (2 marks) What is the systematic risk of the common stock? b) (3 marks) What is its unsystematic risk

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