i. (Simpleand In Simpleland there are only w risky stocks. A and B, whose detuits...
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i. (Simpleand In Simpleland there are only w risky stocks. A and B, whose detuits are isted in abte 7 4 TABLE 7.4 Detafls of Stocks A and B Number of shares outstanding 100 t50 Price per share rate of return Expected Standard deviation of retur?n Siock A Stock B 50 2 00 15% 12% 15% 9% Furthemore, the correlation coeficient between the relurns of stocks A and B is PAB There is also a risk-free asse, and Sin?plcland satisfies the CAPM exactly (a) What is the expected rate of return oi the market portfolio? (b) What is the sdrd deviton of the ak poto? (c) What is the be of stock A? (d) Whal is the risk-tree rate in Simplelnd
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