Question
Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns. The expected return of the market is
Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns. The expected return of the market is 12 percent with a standard deviation of 15 percent. The risk-free rate is 5 percent. What is the required return of Stock X?
7.94%
9.56%
13.17%
15.28%
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Get StartedRecommended Textbook for
Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
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