Question: Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 17.18%. The stock has a beta of

Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 17.18%. The stock has a beta of 1.7. If the market risk premium is 8.71%, what is the implied risk-free rate of return?

2) USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Asset (A) Asset (B)

E(RA) = 14% E(RB) = 16%

(σA) = 13% (σB) = 18%

WA = 0.4 WB = 0.6

COVA,B = 0.0024

What is the standard deviation of this portfolio?

Neuvac Corp. common stock has an expected return of 18% and a standard deviation of 8%. The market has an expected return of 8% and a standard deviation of 7%. If the stock's returns and the market's returns have a correlation coefficient of 0.37, what is Neuvac's beta?

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