Consider the CAPM model. Stock X has a risk premium of 13%, and its standard...
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Finance
Consider the CAPM model. Stock X has a risk premium of 13%, and its standard deviation is 18%. The market index has a risk premium of 12%. The T-bill rate is 2%. The correlation between X and the market index is 0.1735. What is the standard deviation of the market index?
A. 0.0255
B. 0.0212
C. 0.0288
D. 0.0831
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