Question: age 1: Question 19 (15 points) . You are analyzing potential investments for a client. Stock A has an expected return of 12.0% and its

 age 1: Question 19 (15 points) . You are analyzing potential

age 1: Question 19 (15 points) . You are analyzing potential investments for a client. Stock A has an expected return of 12.0% and its covariance with the market portfolio is 0.0072. Stock B has a return variance of 0.0972 and a correlation with the market portfolio of 0.29. Stock C has a beta of 1.2 and expected return of 6.7%. Long term investment-grade corporate bonds currently yield 4.6%, 10 year government bonds yield 2.7%, and inflation stands at 2.7%. What is the expected return of Stock B? ge 2

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