What is its expected return of company

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Reference no: EM13835158

Your financial plan tells you that you desire investments that have the potential to return 7%. Suppose the risk-free return is 3% and the market portfolio has an expected return of 7% and a standard deviation of 9.6%. Company A stock has a beta of 0.5. Show all work for the following for full credit.

a) What is its expected return of company A?

b) What is your investment decision regarding company A?

Reference no: EM13835158

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