Assuming Stock B is the market portfolio; Stock A Stock B Stock C Expected Return 0.032123 0.021519
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Question:
Assuming Stock B is the market portfolio;
Stock A | Stock B | Stock C | |
Expected Return | 0.032123 | 0.021519 | 0.011348 |
Variance | 0.00175860 | 0.00114550 | 0 |
COV(AB) | 0.00245250 | ||
If you believe the CAPM is valid, what is the required return for Stock A?
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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