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The market price of a security is $26, the security's expected rate of return is 12%, the riskless rate of interest is 3% and the

The market price of a security is $26, the security's expected rate of return is 12%, the riskless rate of interest is 3% and the market risk premium is 5% (=E(Rm)Rf=E(Rm)Rf). How would the security's current price change if its expected future payoff remains the same but the covariance of its rate of return with the market portfolio halves?

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