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Assume asset j's -0.75 and that ,1,-3% and ,AI-10%. (a) Assume that the CAPM theory holds, what is ^j, the average return of asset j
Assume asset j's -0.75 and that ,1,-3% and ,AI-10%. (a) Assume that the CAPM theory holds, what is ^j, the average return of asset j equal to? (b) If actually ,1,-9%, is asset j overpriced, underpriced or correctly priced
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