Multiple Choice
Stock X has a standard deviation of 25% and a correlation coefficient of 0.7 with market returns.The expected return of the market is 12% with a standard deviation of 15%.The risk-free rate is 5%.What is the required return of Stock X?
A) 7.94%
B) 9.56%
C) 13.17%
D) 15.28%
Correct Answer:
Verified
Correct Answer:
Verified
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