Question: uestion 34 8 points Save Answer A security analyst at CIBC securities has summarized information on three firms and the market as follows. The risk

uestion 34 8 points Save Answer A security
uestion 34 8 points Save Answer A security
uestion 34 8 points Save Answer A security analyst at CIBC securities has summarized information on three firms and the market as follows. The risk free rate is 4% the market risk premium (E(Rm) - R) is 6%, and the standard deviation of returns of the market portfolio is 25% Security A Security Security Correlation with market portfolio 0.70 075 0.55 Standard deviation of security returns 35% 50 50% Estimated Security Returns See part 109 PARTA Determine the CAPM expected or required rate of return for securities A, B and C using the information given above and enter your answer below an a percentage to two decimal places Expected return of Secutity Ais Expected return of Security is Expected return of Security Con PARTB Security Als currently trading at 525 The CIBC analyst han estimated that the price of Security A in one year can teach 530,528, or $25 will probabilities 25% 50% and 25% respectively Calculate the estimated one year retum for security A (express your answer as a percentage to 2 decimal places and do not round intermediate stapo) Estimated one year return for security Als PART te the following three terms Over Price Under Pricedorary Priced to dete scurty, and below. Security A Security Bus Security is

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