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012 Consider the investment opportunity described below: Beta Jelly Roll's Angel Video Viper Shoe Lacers 1.70 1.45 0.85 0.45 Expected Return or Actual Return (E(r))
012 Consider the investment opportunity described below: Beta Jelly Roll's Angel Video Viper Shoe Lacers 1.70 1.45 0.85 0.45 Expected Return or Actual Return (E(r)) 16.0% 12.5% 10.4% 5.9% Is Unlimited a) Plot these on security Market Line given risk free rate rf:3% and market return rm-10%. vestment is overpriced? Which have a positive Net Present Value when their cash flows are b) Which of the in discounted at the CAPM required rate of return? Explain your reasoning tion goes up by 2% and market risk premium remains the same, which security is c) If the infla overpriced/underpriced/correctly priced. Explain
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