Assume the risk-free rate is 4.1% and expected market return is 10.2%. Suppose that you have observed the following returns over time:
Year |
Stock A |
Stock B |
Market |
2012 |
5% |
14% |
12% |
2013 |
7% |
15% |
10% |
2014 |
-9% |
-17% |
-12% |
2015 |
1.5% |
3% |
1% |
2016 |
10% |
18% |
15% |
2017 |
17.5% |
24.5% |
20% |
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Assume the risk-free rate is 4.1% and expected market return is 10.2%. Suppose that you have...
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