Correlation of stocks purchased with the market index


The risk-free rate of return is 4.5%. Expected return on market index is 7.2%. Correlation of stocks purchased with the market index increased from .6 to .8, and the standard deviation of the stock and market index is 25.7% and 16.4% respectively. Expected return on the stock is what?

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Financial Management: Correlation of stocks purchased with the market index
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