Question
Assume the CAPM holds and use the following information: Portfolio A has E(r) of 15% and of 1. Portfolio B has E(r) of 10% and
Assume the CAPM holds and use the following information:
Portfolio A has E(r) of 15% and
of 1.
Portfolio B has E(r) of 10% and
of 0.7
a) What are the risk free rate and the expected return of the market portfolio?
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
