Stock Y Has a Standard Deviation of 22% and a Covariance

question 113

Multiple Choice

Stock Y has a standard deviation of 22% and a covariance with the market of 0.081.The expected return of the market is 14% with a standard deviation of 18%.The risk-free rate is 5.25%.What is the required rate of return of Stock Y?

• A)6.14%
• B)6.65%
• C)17.25%
• D)27.75%

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