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

question 78

Multiple Choice

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

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

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Definitions:

Fredrickson and Roberts

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Body Image

An individual's perception, thoughts, and feelings about their own body's attractiveness, health, and functionality.

Physical Appearance

Refers to the composite of outward characteristics or traits, including body shape, facial features, hair, and overall aesthetic appeal.

Body Dissatisfaction

Negative subjective evaluation of one’s body size, shape, or appearance.