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6) Assume a fictitious world where there are four stocks: General Electric (GE) CitiGroup (C) British Petroleum (BP) FaceBook (FB) The market is in equilibrium
6) Assume a fictitious world where there are four stocks:
General Electric (GE)
CitiGroup (C)
British Petroleum (BP)
FaceBook (FB)
The market is in equilibrium where CAPM assumptions hold (e.g. homogeneous expectations, efficient markets, zero transaction costs, etc.)
Describe in words, the equilibrium relationship
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