Bsset $x$ has a beta of $1\mathrm{.}0.$ The market risk premium is $10\%$ and the risk$-$free rate is $4\%.$

Based on your own forecast, ${}_{ss}$ et $x$ would offer you a return of $12\%,$ I.e$.,$ the forecast return is $12\%.$

The return from $C{A}_{\text{A}\text{P}\text{M}}$ is

$\%$ and you would

the stock.

$13\%$; sell

$14\%$; buy

$14\%$; sell

$12\%$; buy

$13\%$;buy

$12\%$; sell

Question $7$

Bsset $x$ has a beta of $1\mathrm{.}0.$ The market risk premium is $5\%$ and the risk$-$free rate is $4\%.$

Based on your own forecast, $A_{s}s$ et X would offer you a return of $14\%.$ I.e$.,$ the forecast return is $14\%.$

The return from $C{A}_{\text{A}\text{P}\text{M}}$ is

$\%$ and you would

the stock.

$14\%$; buy

$12\%$; bu

$13\%$; sell

$12\%$; sell

$14\%$; sell

$13\%$; buy