Stock Z Has a Standard Deviation of 18% and a Covariance

question 42

Multiple Choice

Stock Z has a standard deviation of 18% and a covariance with the market of 0.0625.The expected return of the market is 13 with a standard deviation of 20%.The risk-free rate is 5%.What is the required return of Stock Z?

• A)7.50%
• B)7.78%
• C)17.50%
• D)20.43%

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