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Stock A has an expected return of 5.0%, while Stock B has an expected return of 8.1%. The standard deviation of Stock A is 3.1%

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Stock A has an expected return of 5.0%, while Stock B has an expected return of 8.1%. The standard deviation of Stock A is 3.1% and the standard deviation of stock B is 5.3\%. You calculate that the covariance between Stocks A and B is 6.55 percent squared (or 0.000655 in decimal form). Calculate the correlation coefficient between Stock A and Stock B. Please provide your answer to 2 decimals. Your Answer: Consider a risk-free rate of 2.00% and a market risk-premium of 4%. If the required rate of return for the stock is 8.00%, what is its beta? Please provide your answer to 2 decimals, for example 1.23. Your Answer: You are making an important capital budgeting decision for your company. You are considering a project that costs $5,000 upfront and yields the following after-tax incremental cash-flows: Year 1: \$1,500 Year 2: $3,000 Year 3: $1,100 Year 4: $300 Year 5: \$200 What is the NPV of this project when the discount rate is 10% ? Your Answer: The returns for Stock Upsy and Stock Daisy are shown below for 5 possible states of the world. Each state is equally likely. What is the correlation coefficient between these 2 stocks? Enter your answer to two decimal points. For example enter 0.15

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