Question: C. Problem: (12 mars You are looking at two risky assets, the expected returns, standard deviations, and correlation between the two assets are given below:

 C. Problem: (12 mars You are looking at two risky assets,
the expected returns, standard deviations, and correlation between the two assets are

C. Problem: (12 mars You are looking at two risky assets, the expected returns, standard deviations, and correlation between the two assets are given below: E(RA) = 7%, Standard deviation=12% E(Re) = 12%, Standard deviation = 18% Correlation between the two assets is 1.0 1. Which asset has more risk? B. Problem-2- (05 marts A Company's stock has just paid dividend of $6.50 and expected to pay dividend of $6.89 next year. The stock's required rate of return is 16%. Calculate the current market price of the stock if the dividend growth rate is constant. C. Problem -C

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