question 2 Jony Depp, a fund manager at Fidelity McGillan fund, is using the capital asset pricing model for making reco

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answerhappygod
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question 2 Jony Depp, a fund manager at Fidelity McGillan fund, is using the capital asset pricing model for making reco

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question 2
Jony Depp, a fund manager at Fidelity McGillan fund, is using
the capital asset pricing model for making recommendations to his
clients. He has produced the information shown in the following
exhibit.
Forecast Return
Standard Deviation
Beta
Stock X
22.00%
45%
1.25
Stock Y
21.25
31.25
1.875
Market index
17.5
18.75
1
Risk-free rate
6.25
0
0
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