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Assume a perfect world regarding the CAPM assumptions. Two assets have the following data. CAL: R = 4 + S D * * 2 ,
Assume a perfect world regarding the CAPM assumptions. Two assets have the following
data.
CAL: R ;: Beta
Asset A has an expected rate of return of with a variation of ;
Asset has an expected rate of return of and a variation of ;
A combination of en is efficient, the Beta of this combination is
Required:
a If an investor has to choose between A en B which asset is preferable? Explain! pnt
b Is asset A efficient? Show your calculations pnt
c Determine the nonsystematic risk of Asset in decimals pnt
d Calculate the Beta of asset B pnt
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