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The risk-free rate is 3.10%, the market is in equilibrium, and the returns on stocks X, Y and Z are positively, but not perfectly, correlated.

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The risk-free rate is 3.10%, the market is in equilibrium, and the returns on stocks X, Y and Z are positively, but not perfectly, correlated. Stock Return B Weight in Fund Q X 6.10% 10.00% 0.50 40% a) What is the beta of Fund Q? Y 7.90% 10.00% 0.80 20%b) What is the Z 15.10% required return of 10.00% 2.00 40% Fund Q? c) What would you expect the standard deviation of Fund Q to be? a)1.160; b)10.06%; c)

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