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Suppose Company A's stock return has a volatility of 50% and its correlation with the Market Portfolio is 80%. The expected return on the Market
Suppose Company A's stock return has a volatility of 50% and its correlation with the Market Portfolio is 80%. The expected return on the Market Portfolio is 7%, the volatility of the Market Portfolio is 20%, and the riskfree interest rate is 1%. Calculate the expected rate of return on the stock of Company A. Type your answer below, in percentage terms rounded to the nearest whole percent (e.g., 8.05% would be written as 8)
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