Stock X Has a Standard Deviation of 25% and a Correlation

question 58

Multiple Choice

Stock X has a standard deviation of 25% and a correlation coefficient of 0.7 with market returns.The expected return of the market is 12% with a standard deviation of 15%.The risk-free rate is 5%.What is the required return of Stock X?

• A)7.94%
• B)9.56%
• C)13.17%
• D)15.28%

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