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MOck 2012 morning sesh- Q 23 & 24 - Portfolio Management

Hi guys,
Does anyone else feel there are errors in questions 23 & 24 of the 2012 Mock morning exam?
They ask for standard deviation, but then calculate only the variance in the answer (they do not square it to get the std dev).
Also, in Q24 they say the CAPM is R=  2% + 1.2 (12% -2%) is equal to 12%, when it is actually 14%.
Thoughts?

Surprised nobody else has commented on this. I’m pretty sure the required return calculated with the CAPM would be 2 + 1.2 (12-2)= 14%. If the expected return (12%) is less than the required return (14%), the security is overvalued. Right?

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