Question: Consider the following information on computer peripheral companies STMicroelectronics STM, Synaptics SYNA and SuperMicro SMCI The market risk premium is 8% and the risk-free rate
Consider the following information on computer peripheral companies STMicroelectronics STM, Synaptics SYNA and SuperMicro SMCI
The market risk premium is 8% and the risk-free rate is 4.50%. Determine the expected return and standard deviation for each stock. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is riskier overall?
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