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The correlation between the stock returns of Geode Corp. and those of the market is 0.4....

The correlation between the stock returns of Geode Corp. and those of the market is 0.4. The standard deviation of the stock returns of Geode Corp. is 50% whereas the standard deviation of the returns of the market is 15%. The risk-free rate is 2%. If the market’s expected return is 7%, what is the CAPM expected return of Geode Corp.?

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Calculations-Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago
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