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Suppose the market risk premium is 5.7 % and also that the standard deviation of returns on the market portfolio is 0.13. Further assume that

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Suppose the market risk premium is 5.7 % and also that the standard deviation of returns on the market portfolio is 0.13. Further assume that the correlation between the returns on ABX (Barrick Gold) stock and returns on the market portfolio is 0.61, while the standard deviation of returns on ABX stock is 0.33 . Finally assume that the risk-free rate is 2.2 %. Under the CAPM, what is the expected return on ABX stock? (write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)

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