Question: you know the correlation between assets ABC and XYZ is 0.9. You know the standard deviation of the returns of company ABC is 20%. The

you know the correlation between assets ABC and XYZ is 0.9. You know the standard deviation of the returns of company ABC is 20%. The Standard Deviation of the market portfolio is 40%.

a) what is the B of the company ABC

b) what is the expected return of the company if RM=20% and RF= 5%

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