Question: help with (2) please 1 Given that the standard deviation of a stock return is 30%. Its correlation coefficient with the market portfolio return is
1 Given that the standard deviation of a stock return is 30%. Its correlation coefficient with the market portfolio return is 0.75, and that the standard deviation of the market portfolio return is 25% (1) Use Corrt (stock return, S&P500 return) X STDEV(Standard deviation of stock return) STDEV(standard deviation of S&P50 return to hnd beta of the stock (2) Use the security market line or capital asset pricing model to find the required rate of return of the stock, assuming market return is 12% and risk free rate is 3%
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