The market price of a security is $40, the security's expected rate of return is 13%, the

Question:

The market price of a security is $40, the security's expected rate of return is 13%, the riskless rate of interest is 7%, and the market risk premium, [E(Rm) - Rj], is 8%. What will be the security's current price if its expected future payoff remains the same but the covariance of its rate of return with the market doubles?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...