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3. Consider the following data and assume that CAPM holds: Apple Walmart Expected Return 15% 10% Standard Deviation Beta 30% 15% 1.3 0.8 a)
3. Consider the following data and assume that CAPM holds: Apple Walmart Expected Return 15% 10% Standard Deviation Beta 30% 15% 1.3 0.8 a) What is the risk-free rate and the expected return on the market portfolio? b) Estimate the correlation coefficient between Apple and Walmart using a CAPM single- factor model. Assume that the volatility of the market portfolio is 15%
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
