Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns.The expected return of the market is 12 percent with a standard deviation of 15 percent.The risk-free rate is 5 percent.What is the required return of Stock X?
A) 7.94%
B) 9.56%
C) 13.17%
D) 15.28%

Question

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Beta of stock X,11ea8229_34ce_a81b_bbd8_9b1c47a74271_TB1726_00 Required return of stock X,11ea8229_34ce_a81c_bbd8_f54d47921bad_TB1726_00

Stock X Has a Standard Deviation of 25 Percent and a Correlation