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To be done in Excel 4.- A stock has an expected return of 15 percent, a beta of 1.2, and the expected returnon the market
To be done in Excel
4.- A stock has an expected return of 15 percent, a beta of 1.2, and the expected returnon the market is 12 percent. What must the risk-free rate be? 5.- Consider the following information: State Boom Good Poor Bust Probability 0,25 0,35 Stock A 0,20 0,10 0,05 (0,05) Stock B 0,30 0,12 0,00 0,02 Stock C 0,40 0,02 (0,05) 0,03 0,35 0,05 weights 0,34 0,36 0,30 What is the expected return of the portfolio? What is the variance of the portfolio? What is the standard deviationStep by Step Solution
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