You are given: (1) The risk-free interest rate is 0.04 (i) The market Portfolio has an expected return of 0.12 and a volatility of 0.2 A stock has a correlation with the market of 0.3 and a volatility of 0.6 a) find the expected return on the stock. b) what are the expected return and volatility of an efficient portfolio that has the same systematic risk as the stock?

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