2- Assume that the market has an expected return of 12% and volatility (standard deviation) of 20%. Company X has a 50% volatility (standard deviation). The correlation between the market and Company...

2- Assume that the market has an expected return of 12% and volatility (standard<br>deviation) of 20%. Company X has a 50% volatility (standard deviation). The<br>correlation between the market and Company X is 90%. The risk-free rate is 3%.<br>What would be the expected return on Company X? (Hint: You have to check my<br>lecture note (Lecture Note #10b - Risk and Return: Capital Asset Pricing Model<br>(CAPM))<br>23%<br>O 23,25%<br>23,50%<br>23,75%<br>Diğer:<br>

Extracted text: 2- Assume that the market has an expected return of 12% and volatility (standard deviation) of 20%. Company X has a 50% volatility (standard deviation). The correlation between the market and Company X is 90%. The risk-free rate is 3%. What would be the expected return on Company X? (Hint: You have to check my lecture note (Lecture Note #10b - Risk and Return: Capital Asset Pricing Model (CAPM)) 23% O 23,25% 23,50% 23,75% Diğer:

Jun 11, 2022

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2- Assume that the market has an expected return of 12% and volatility (standard deviation) of 20%. Company X has a 50% volatility (standard deviation). The correlation between the market and Company...

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