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What is the required return of stock x

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Problem: Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns. The expected return of the market is 12 percent with a standard deviation of 15 percent. The risk-free rate is 5 percent. What is the required return of Stock X? Please provide the complete solution of this problem.

Reference no: EM132485081

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