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Stock AXY's correlation with the market portfolio of 0.5. The stock has a standard deviation of returns of 40%, and the market has a standard
Stock AXY's correlation with the market portfolio of 0.5. The stock has a standard deviation of returns of 40%, and the market has a standard deviation of 20%. The risk- free rate is 5% per year, and the expected return on the market is 15% per year. What is the expected return for AXY stock based on CAPM?
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