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Calculate bombardier beta relative to the market portfolio

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Reference no: EM133118591

Suppose the risk-free interest rate is 5%. The market portfolio has an expected return of 12% and a standard deviation equal to 44%

The standard deviation of the Bombardier stock is equal to 68% and its correlation with the market portfolio is equal to 0.91

Question 1. Calculate Bombardier's beta relative to the market portfolio.

Question 2. According to the CAPM assumptions, what is Bombardier's expected profitability

Reference no: EM133118591

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