Expected return for the market, 12%; Standard deviation of market return, 21%; Risk-free rate, 8%; Correlation coefficient between Stock A and the market, 0.8; Stock B and the market, 0.6; Standard deviation for stock A, 25%; Standard deviation for stock B, 30%. a. Calculate the beta for stock A and stock B. b. Calculate the required return for each stock

Q: beta and expected return

A: : Beta refers to the measurement of stock movement in relation to the overall market. A beta greater…

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A:

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