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11.1. Consider an asset with a beta of -0.5, a risk-free rate of 10%, and a market return of 17%. What is the reward-to-risk ratio
11.1. Consider an asset with a beta of -0.5, a risk-free rate of 10%, and a market return of 17%.
- What is the reward-to-risk ratio in equilibrium? (5 points)
- What is the expected return on the asset? (5 points)
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