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The risk-free rate is 4.30%, 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 4.30%, the market is in equilibrium, and the returns on stocks X Y and Z are positively, but not perfectly, correlated. 40% 20% Fund Q? Stock Return 0 B Weight in Fund Q X 7.30% 10.00% 0.50 a) What is the beta of Y 9.10% 10.00% 0.80 Z 16.30% b) What is the 10.00% 2.00 40% required return of Fund Q? c) What would you expect the standard deviation of Fund Q to be? a)1.160; b)11 26%; c)

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