What should be xyz return

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Question - Assume we are living in a world where CAPM is valid. If market volatility is equal to 20% and the market return is equal to 6.5%. Stock XYZ has a total volatility equal to 20%, a firm specific volatility equal to 5%. What should be XYZ return if the risk free rate is equal to 1%?

Reference no: EM133078598

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