Question: Problem 11-29 Correlation and Beta You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset:


Problem 11-29 Correlation and Beta You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-1. What is the expected return of Firm A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-2. What is your investment recommendation regarding Firm A for someone with a welldiversified portfolio? Sell Buy b-3. What is the expected return of Firm B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-4. What is your investment recommendation regarding Firm B for someone with a welldiversified portfolio? Sell Buy b-5. What is the expected return of Firm C? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-6. What is your investment recommendation regarding Firm C for someone with a welldiversified portfolio? Buy Sell
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