Multiple Choice
Stock Z has a standard deviation of 18 percent and a covariance with the market of 0.0625.The expected return of the market is 13 percent with a standard deviation of 20 percent.The risk-free rate is 5 percent.What is the required return of Stock Z?
A) 7.50%
B) 7.78%
C) 17.50%
D) 20.43%
Correct Answer:
Verified
Correct Answer:
Verified
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