Stock A has a standard deviation of 20% and a correlation coefficient of 0.64 with...
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Stock A has a standard deviation of 20% and a correlation coefficient of 0.64 with market returns. The expected return of the market is 12% with a standard deviation of 15%. The risk-free rate is 5%. The market risk premium is 7%. What is the required rate of return of Stock A using the capital asset pricing model (CAPM)?
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