Does capm holdstock a has the expected return of 09, Ask an Expert

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Does CAPM hold

Stock A has the expected return of 0.9%, standard deviation of 10% and the correlation with the market portfolio of 0.3. The risk-free rate is 1%. Does CAPM hold?

Hint 1: Think what should be the sign of stock A beta.

Hint 2: Think what should be the sign of the market risk premium.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92873481

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