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Page 4 Sponse ** Next page is the last page, No questions, only submission. * Must show detail of all relevant workings. (No workings, No marks) 3 points Calculate the Standard deviation of Stock 'BSRM Firm. Assume data is collected as population not sample. *Note: (Write down answer in percentage value & in two decimal point value, ex: 9.24 but ignore dollar, % or coma sign.) Economic Condition Market Good 11% BSRM Firm stock Probability 21% 0.50 7% 0.35 Fair 15% 4% Poor -4% 0.15 * Assume Risk free rate is 9%. Your answer Calculate the Standard deviation of Market. Assume data is collected as population not sample. *Note: (Write down answer in percentage value & in two decimal point value, ex: 9.24 but ignore dollar. % or coma sign.) K6PnY6BizJ8JfApE4TOfolppZUMseva8Uw/formResponse Calculate the Correlations of Stock BSRM & Market. Assume Covariance between Stock BSRM & Market is 0.00121 *Note: (Write down answer in FOUR decimal point value, ex, 0.1243. Ignore dollar, % or coma sign.) 2 points Your answer Calculate the Beta of Stock BSRM. *Note: (Write down answer in TWO decimal point value, ex, 2.13. Ignore dollar, % or coma sign.) 2 points Your answer Compute the fair return of Stock BSRM according to CAPM theory. Note: 3 points (Write down answer in percentage value & in two decimal point value, ex: 9.24 but ignore dollar. % or coma sign.) Your answer Would an investment in the stock BSRM be wise! WILL YOU INVEST? YES OR NO (EXPLAIN BRIEFLY)

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