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CFA Level I Portfolio Risk and Return: Part II question

Portfolio Management / Portfolio Risk and Return: Part II

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Portfolio Risk and Return: Part II sample question

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Portfolio Management

Portfolio Risk and Return: Part II

Lena Fischer estimates that Stock Q has a correlation of 0.40 with the market, a standard deviation of 30%, and that the market standard deviation is 15%. The risk-free rate is 3.0%, and the expected market return is 9.5%. Under the CAPM, the expected return of Stock Q is closest to:

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