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Time lett 02 You are given the following information corporate stock P and the market: A. The annual effective risk-free rate is 7. B. The

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Time lett 02 You are given the following information corporate stock P and the market: A. The annual effective risk-free rate is 7. B. The expected return and volatility for corporate stock P and the market are shown in the table below: Expected Return Volatility corporate stock 7 33 Market 12 C. The correlation between the returns of corporate stock P and the market is 18. Assume the Capital Asset Pricing Model holds. Calculate the required return for corporate stockP? 6

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