Prove that i(1 i)rf in equation (6.3), assuming the CAPM holds. To do this, take expected values

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Prove that i(1 i)rf in equation (6.3), assuming the CAPM holds. To do this, take expected values of both sides of this equation and match up the values with those of the equation for the CAPM’s securities market line.

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Financial Markets And Corporate Strategy

ISBN: 9780077119027

1st Edition

Authors: David Hillier, Mark Grinblatt, Sheridan Titman

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