Question
1. The manager of the fund found an investment opportunity. The beta coefficient of the investment opportunity is 1.5 and its expected return is 17.5%.
1. The manager of the fund found an investment opportunity. The beta coefficient of the investment opportunity is 1.5 and its expected return is 17.5%. According to the CAPM, should the manager invest in that opportunity? Why or why not?
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
