Assume that the expected rate of return on the market portfolio is 23
EXPECTED RETURN: A stock's returns have the following distribution: probability of this demand occurring.1.2.4.2.1----1.0 Rate of return if this demand occurs (50%) (5) 16 25 60 calculate the stocks expected return, standard deviation, and coefficient of variation. (Capital market line) Assume that the expected rate of return on the market portfolio is 23% and the rate of return on T-bills (the risk-free rate) is 7%. The standard deviation of the market is 32% Assume that the market portfolio is efficient 4. Assume that the expected rate of return on the market portfolio is 23% and the rate of return on T-bills (the risk-free rate) is 7%. The standard deviation of the market is 32%.