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Suppose the risk-free rate is 4%. The expected return of the market portfolio is 12%, while the standard deviation of the market portfolio return is
Suppose the risk-free rate is 4%. The expected return of the market portfolio is 12%, while the standard deviation of the market portfolio return is 15%. The return of stock A has a standard deviation of 20% and correlation coefficient with the market portfolio return of 0.06. a What is stock A's beta? 0.08 What is stock A's expected return? 4.64%
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