Question: Correlation coefficient between Kaplox's returns and the market returns: 0.5 Standard deviation of Kaplox's returns: 12 % . You own 5,000 and you borrow 3,000


Correlation coefficient between Kaplox's returns and the market returns: 0.5 Standard deviation of Kaplox's returns: 12 % . You own 5,000 and you borrow 3,000 at the risk-free rate, in order to invest a total amount of 8,000 in the market portfolio. Determine: The expected rate of return on your portfolio The beta coefficient of your portfolio The standard deviation of your portfolio's returns What is the Kaplox's beta? What is the required rate of return on Kaplox's stock? Kaplox's current stock price is 52. Is the stock undervalued or overvalued
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