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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 O wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 36 points Correlation* Beta Security Firm A eBook 0.94 Print Firm B Expected Return Standard Deviation 0.118 0.23/ 0.132 0.113 0.74 0.12 0.23| 1.49 0.42 0.27 References Firm C The market portfolio The risk-free asset 0.05 * With the market portfolio b- What is the expected return of Firm A? (Do not round intermediate calculations and 1. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % points eBook Print References b- What is your investment recommendation regarding Firm A for someone with a well- 2. diversified portfolio? Sell Buy b- What is the expected return of Firm B? (Do not round intermediate calculations and 3. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 5 b- What is your investment recommendation regarding Firm B for someone with a well- 4. diversified portfolio? Buy 36 points Sell eBook b- What is the expected return of Firm C? (Do not round intermediate calculations and 5. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Print References Expected return b- What is your investment recommendation regarding Firm C for someone with a well- 6. diversified portfolio? Buy Sell
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