Focus on their advantages and limitations

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Reference no: EM131822522

1. Discuss four different methods of valuation, with a focus on their advantages and limitations.

2. Calculate the required rate of return for a risky asset whose correlation with the market is 0.5 given the standard deviation of the stock is 10%, the standard deviation of the market is 15%, the expected return on the market is 11% and the risk free rate is 6%.

Reference no: EM131822522

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