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The market portfolio has expected return of 12% and volatility of 25%. The risk-free rate is 2%. Stock A has volatility of 50% and its
The market portfolio has expected return of 12% and volatility of 25%. The risk-free rate is 2%. Stock A has volatility of 50% and its return has correlation of 0.6 with the return on the market portfolio. What is the expected return of stock A based on Capital Asset Pricing Model?
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
