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Information is provided for the common stock of company X, an efficient portfolioQ, the market portfolio M, and the riskless asset.

Please assume the correlation between the return of stock X and the return of the market portfolio is 0.4.

Can you fill in the values of the 5 empty cells?

 

Expected Return

Beta

Standard Deviation

Stock X

 

1.2

 

Efficient Portfolio Q

 

2.0

 

Market Portfolio M

8%

 

20%

Riskless Asset

3%

0.0

0%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92765520

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