Question: We know that stock A exactly increases 14% when index is up by 10% and declines also 14% when index declines by 10%. Can we
We know that stock A exactly increases 14% when index is up by 10% and declines also 14% when index declines by 10%. Can we find the expected return of that stock if we know that the expected return of the index is 50% and the annual rate of return of T-Bills is 12%?
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