Exercise 31.2.3 For an asset uncorrelated with the market (that is, with zero beta), the CAPM says

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Exercise 31.2.3 For an asset uncorrelated with the market (that is, with zero beta), the CAPM says its expected rate of return is the riskless rate even if this asset is very risky with a large standard deviation.Why?

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Financial Engineering And Computation Principles Mathematics Algorithms

ISBN: 9780521781718

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Authors: Yuh-Dauh Lyuu

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Question Posted: Oct 28, 2024 05:02 AM

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Exercise 31.2.3 For an asset uncorrelated with the market (that is, with zero beta), the CAPM says

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Financial Engineering And Computation Principles Mathematics Algorithms

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