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Two common stocks X and Y, have the following expected return, Variance of return and Beta over the next year: Common stock Expected Return Variance

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Two common stocks X and Y, have the following expected return, Variance of return and Beta over the next year: Common stock Expected Return Variance = Beta X 0.12 36 0.90 Y 0.20 225 1.50 Additionally, assume that the correlation coefficient of returns between securities X and Y is -100%. For a portfolio consisting of 75 percent of invested in stock X and the remainder invested in stock Y, determine the: a. Expected rate of return on the portfolio XY. b. Beta of the portfolio XY. c. Standard deviation of the portfolio XY. d. Suppose the risk-free rate is 3 percent and the market risk premium is 4 percent what is the required rate of return for common stock X in anonco of 10% in

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