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The standard deviation of the return on the stock market index (M) is 20% and the standard deviation of company As stock is 48%. The

The standard deviation of the return on the stock market index (M) is 20% and the standard deviation of company As stock is 48%. The correlation !,# between the return on stock market index and return on company As stock is 0.32. Assume expected returns are determined by the CAPM. The return on the risk-free asset is 4% and the expected return on the market is 14%

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