Question
You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing
You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. I have the rest but not Firm C Beta.
Security | Expected Return | Standard Deviation | Correlation* | Beta |
Firm A | 0.102 | 0.33 | 0.44 | 0.83 |
Firm B | 0.142 | 0.49 | 0.52 | 1.38 |
Firm C | 0.162 | 0.63 | 0.37 | ?? |
The market portfolio | 0.12 | 0.19 | 1 | 1 |
The risk-free asset | 0.05 | 0 | 0 | 0 |
What is the expected return of Firm A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the expected return of Firm B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the expected return of Firm C?
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