Question: wondering the expected return John is an analyst at Star investments, Inc, and is curfenlly woding on valuing HomeStore, Inc. which is a home gooda

John is an analyst at Star investments, Inc, and is curfenlly woding on valuing HomeStore, Inc. which is a home gooda ratail store. The Beta fox Homeatore in t 5 and standard deviation foc monthily retums of Homestore is 10\%. Expected return on the makket is 8% and Treasury bill fate is 3%. 1. Beta captures which one of the following bypes of risk? a. Systemationsk Using the data above, compute the expected return for Homestore, Inc. a. 15% b. 7.5% c. 10.5% d. 10%
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