What is the expected return of stock? p

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The beta of four stockslong dash-?P, ?Q, R, and S -are 0.44?, 0.91,1.05?, and 1.46 ?, respectively and the beta of portfolio 1 is 0.97

Point 1: 0.97?, the beta of portfolio 2 is 0.85

Point 2: 0.85?, and the beta of portfolio 3 is 1.08

Point 3: 1.08. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.5

Point 4: 3.5?% ?(risk-free rate) and a market premium of 10.0

Point 5: 10.0?% ?(slope of the? line)?

Question 1: What is the expected return of stock? P?

Question 2: What is the expected return of stock? Q?

Question 3: What is the expected return of stock? R?

Question 4: What is the expected return of stock? S?

Question 5: What is the expected return of PORTFOLIO 2?

Question 6: What is the expected return of PORTFOLIO 3?

Reference no: EM132460705

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