Question: what is part b) Stock FM has a standard deviation of 24.7 percent and a correlation coefficient of 0.57 with market returns. The standard deviation

what is part b) Stock FM has a standard deviation of 24.7 what is part b)

Stock FM has a standard deviation of 24.7 percent and a correlation coefficient of 0.57 with market returns. The standard deviation of market return is 19.7 percent, and the expected return is 15.7 percent. The risk-free rate is 6.2 percent. (a) Your answer is correct. What is the beta of stock FM? (Round answer to 3 decimal places, e.g. 0.364.) Beta eTextbook and Media Attempts: 1 of 1 used (b) What is the required rate of return of stock FM by the CAPM model? (Round answer to 3 decimal places, e.g. 11.361\%.)

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