The after data is givennbspexpected return for the business, Ask an Expert

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the after data is given:

Expected return for the business sector = 15%

Standard deviation of the business return = 25%

Danger free rate = 8%

Relationship coefficient between stock An and the business sector = 0.8

Relationship coefficient between stock B and the business sector = 0.6

Standard deviation for stock A = 30%

Standard deviation for stock B = 24%

(i) What is the beta for stock A?

(ii) What is the normal return for stock A ?

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