14. On the basis of a one-factor model, assume that the riskfree rate is 6% and the...
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14. On the basis of a one-factor model, assume that the riskfree rate is 6% and the expected return on a portfolio with unit sensitivity to the factor is 8.5%. Consider a portfolio of two securities with the following characteristics:
According to the APT, what is the portfolio's equilibrium expected return?
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Related Book For 
Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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