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You are given the following information corporate stock P and the market: A. The annual effective risk-free rate is 5. B. The expected return and

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You are given the following information corporate stock P and the market: A. The annual effective risk-free rate is 5. B. The expected return and volatility for corporate stock P and the me ket are shown in the table below: Expected Return Volatility corporate stock P 7 39 Market 7 19 C. The correlation between the returns of corporate stock P and then arket is 11. Assume the Capital Asset Pricing Model holds. Calculate the required return for corporate stock P? 14,660$ : 60 146 14,660.5588$ : 14660.55 Answer: You are given the following information corporate stock P and the market: A. The annual effective risk-free rate is 5. B. The expected return and volatility for corporate stock P and the me ket are shown in the table below: Expected Return Volatility corporate stock P 7 39 Market 7 19 C. The correlation between the returns of corporate stock P and then arket is 11. Assume the Capital Asset Pricing Model holds. Calculate the required return for corporate stock P? 14,660$ : 60 146 14,660.5588$ : 14660.55

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