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The following are estimates for two stocks. The market index has a standard deviation of 22% and the risk-free rate is 10%. Required: a. What

image text in transcribed The following are estimates for two stocks. The market index has a standard deviation of 22% and the risk-free rate is 10%. Required: a. What are the standard deviations of stocks A and B ? b. Suppose that we were to construct a portfolio with proportions: Compute the expected return, beta, nonsystematic standard deviation, and standard deviation of the portfolio

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