Question: You are given the following correlation matrix for Securities J, K, and the Market: You know that the variance for J, K, and the Market

You are given the following correlation matrix for Securities J, K,

You are given the following correlation matrix for Securities J, K, and the Market: You know that the variance for J, K, and the Market are, respectively: \$ 0.0144004,0.0268960 \$, and 0.0005760. Also, \$ \\mathrm{r}_{\\mathrm{RF}}=0.04 \$ and \$ \\mathrm{RP}_{\\mathrm{M}}=0.12 \$. Determine the required rate of return for Security \$ \\mathrm{K} \$, assuming CAPM is correct. \28.60 \27.46 \26.32 \30.88 \29.20

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