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Suppose the market risk premium is 6.9 % and also that the standard deviation of returns on the market portfolio is 0.10 . Further assume

Suppose the market risk premium is 6.9 % and also that the standard deviation of returns on the market portfolio is 0.10 . Further assume that the correlation between the returns on ABX (Barrick Gold) stock and returns on the market portfolio is 0.56 , while the standard deviation of returns on ABX stock is 0.35 . Finally assume that the risk-free rate is 2.4 %. Under the CAPM, what is the expected return on ABX stock?

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