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Assume that CAPM holds and the standard deviation of the market portfolio is 14%. Identify the risk-free rate. Identify the expected rate of return on
Assume that CAPM holds and the standard deviation of the market portfolio is 14%. Identify the risk-free rate. Identify the expected rate of return on the market portfolio. You invest $8,000 on asset A, $10,000 on asset B and $2,000 on asset C. Explain how much you are expected to receive at the end of one year. Using CAPM, examine the expected amount derived in
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