Question
Assume the CAPM holds. The expected return of the market portfolio is 15% and its standard deviation is 20%. The T-bill rate is 5%. What
Assume the CAPM holds. The expected return of the market portfolio is 15% and its standard deviation is 20%. The T-bill rate is 5%.
What is the covariance between the return of a security and the return of the market if the beta of the security is 0.8?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
