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Stock Beta and Standard Deviation:

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1. A stock has an expected return of 13.6 percent, the risk free rate is 4 percent, and the market risk premium is 7.5 percent. What must the beta of this stock be?

2. A portfolio has an annual variance of .0607. What is the standard deviation over a two month period.

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Solution Summary

This solution answers two short conceptual question on capital asset pricing model and stock standard deviation.

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