The following information is available for three stocks in the equity market and for the market...
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The following information is available for three stocks in the equity market and for the market index. Alpha plc Delta plc Charlie Plc Market Index Expected Return 3% 9% 15% 12% Standard Deviation of returns 8% 14% 22% 16% The risk free rate of interest is 0.25%. A)This market is currently in equilibrium according to the CAPM. Calculate the beta values for each of the three stocks. B) Calculate whether the three stocks plot on the CML The following information is available for three stocks in the equity market and for the market index. Alpha plc Delta plc Charlie Plc Market Index Expected Return 3% 9% 15% 12% Standard Deviation of returns 8% 14% 22% 16% The risk free rate of interest is 0.25%. A)This market is currently in equilibrium according to the CAPM. Calculate the beta values for each of the three stocks. B) Calculate whether the three stocks plot on the CML
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