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The following information is given to you: 15% 25% Expected return for the market Standard deviation of the market return Risk-free rate Correlation coefficient between
The following information is given to you: 15% 25% Expected return for the market Standard deviation of the market return Risk-free rate Correlation coefficient between stock A and the market Standard deviation for stock A 8% 0.8 30% a) What is the beta for stock A? b) What is the expected return for stock A? c) Calculate the alpha of stock A if the actual return from the stock is 16% d) What does the beta and alpha indicate about stock A7(Marks 3+3+2+2)
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