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Suppose the market risk premium is 5% and also that the standard deviation of returns on the market portfolio is 0.19 . Further assume that

Suppose the market risk premium is 5% and also that the standard deviation of returns on the market portfolio is 0.19 . Further assume that the correlation between the returns on ABX (Barrick Gold) stock and returns on the market portfolio is - 0.10 , while the standard deviation of returns on ABX stock is 0.26 . Finally assume that the risk-free rate is 4%. Under the CAPM, what is the expected return on ABX stock

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