the returns on Magee companys stock have a standard deviation of 30% and a correlation with the returns on the market portfolio of 0.8. the standard deviation of the market portfolios return is 20%. the risk free rate is 3% and the market risk premium is 6%. what is magee's expected return according to the CAPM?

the returns on Magee companys stock have a standard deviation of 30% and a correlation with the returns on the market portfolio of 0.8. the standard deviation of the market portfolios return is 20%. the risk free rate is 3% and the market risk premium is 6%. what is magee's expected return according to the CAPM?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 14P

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