A stock has a beta of 0.75 and the standard deviation of its returns is 25%....
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A stock has a beta of 0.75 and the standard deviation of its returns is 25%. The market return is 15% and the risk free rate is 4%. 1. what is the expected return for stock 2. what are the expected return and standard deviation for a portfolio that is 70% invested in the stock and 30% in the risk free asset A stock has a beta of 0.75 and the standard deviation of its returns is 25%. The market return is 15% and the risk free rate is 4%. 1. what is the expected return for stock 2. what are the expected return and standard deviation for a portfolio that is 70% invested in the stock and 30% in the risk free asset
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Answer rating: 100% (QA)
1 The expected return for the stock can be calculated using the Capital Asset Pricing Model CAPM ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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