Question 12 (5 points) 12. Compute the standard deviation of the expected return given these three...

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Answer 1

Answer #1

Q:12

Calculation of Expected Return:

Calculation of Standard Deviation:

SD=√2149.92

=46.37

Q:13.

Required Return(Rj)=Risk Free Ret.(Rf)+Beta(Market Return-Risk Free Ret.)

Rj = 4+.15(13 - 4)

=4+1.35

=5.35

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Answer 2

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