Assume market risk premium

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Reference no: EM131452063

Stock of a company has covariance of 0.065 with the market portfolio. What should be the expected return of this company when variance of stock of the company is 3.8% and standard deviation of market portfolio is 21.0%? Assume market risk premium to be 7.5% and risk-free rate to be 2.5%.

Reference no: EM131452063

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