Find what is the expected return of asset gamma

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Problem 1: The Sharpe ratio of an asset Alpha is 0.8. Alpha has and expected return of 12% and a standard deviation of 20%. You have been tasked to arrive at the expected return of an asset Gamma. The market return in this economy is 14% and the beta (systematic risk) of Gamma with market return is 1.4. What is the expected return of asset Gamma?

Reference no: EM132706280

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