Solution-Expected return to stock, The returns on stocks A

Expected return to stock

Reference no: EM131114392

The returns on stocks A and B are perfectly negatively correlated (). Stock A has an expected return of 21 % and a standard deviation of return of 40%. Stock B has a standard deviation of return of 20%. The risk-free rate of interest is 11 %. What must be the expected return to stock B?

Reference no: EM131114392

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Expected return to stock

Reference no: EM131114392

Reference no: EM131114392

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