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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. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Security Firm A Firm B Expected Return Standard Deviation Correlation Beta 96 1.51 120 21 130 40 76 20 25 irm The market portfolio The risk-free asset 12 05 * With the market portfolio b-1. 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.) Expected return What is your investment recommendation regarding Firm A for someone with a well-diversified portfolio? b-2 O Sell Buy b-3. 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.) Expected return
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