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You are given the following information about corporate stock P and the market: Risk-free rate is 7
The expected return and volatility for corporate stock P is 7 and 33 respectively.
The Expected Return and Volatility for Market is 6 and 12 respectively.
The correlation between the returns of corporate stock P and the market is 18. Assume the Capital Asset Pricing Model holds. Calculate the required return for corporate stock P? Could somebody solve this question?
Thanks.