Stock of a company has covariance of 0065 with the market


Question: Stock of a company has covariance of 0.065 with the market portfolio. What should be the expected return of this company when variance of stock of the company is 3.8% and standard deviation of market portfolio is 21.0%? Assume market risk premium to be 7.5% and risk-free rate to be 2.5%. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: Stock of a company has covariance of 0065 with the market
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