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Wilson holds a portfolio that invests equally in three stocks (WA-WB-wc = 1/3). Each stock is described in the following table: Stock Beta Standard Deviation

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Wilson holds a portfolio that invests equally in three stocks (WA-WB-wc = 1/3). Each stock is described in the following table: Stock Beta Standard Deviation Expected Return A 0.5 1.0 C 2.0 23% 38% 45% 7.5% 12.0% 14.0% An analyst has used market- and firm-specific information to generate expected return estimates for each stock. The analyst's expected return estimates may or may not equal the stocks' required returns. You've also determined that the risk-free rate [Rr] is 496, and the market risk premium [RPM] is 5%. Given this information, use the following graph of the security market line (SML) to plot each stock's beta and expected return on the graph. Tool tip: Mouse over the points on the graph to see their coordinates

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