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The covariance and correlation between stock A and stock B are 125.6 and 0.27, respectively. If the standard deviation of stock A is 20%, then
The covariance and correlation between stock A and stock B are 125.6 and 0.27, respectively. If the standard deviation of stock A is 20%, then the standard deviation of stock B is a. 25% b. 30% c. 23% d. cannot be calculated You are considering investing some of your money in Harry Potter stock. Your investment horizon is one year. The price of a share of Harry Potter stock is expected to be $100 in one year time and Harry Potter firm is expected to distribute $2 per share. If the HPR on Harry Potter stock is 6.25%, at what price is the share of the stock is currently trading? a. $96 Ob. $98 c. $94 d. cannot be calculated
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