Consider CAPM theory with the AEX-index as market portfolio (mpf). Assume that the mpf has expected (annual) return rM = 8%, and volatility oM
Consider CAPM theory with the AEX-index as market portfolio (mpf). Assume that the mpf has expected (annual) return rM = 8%, and volatility oM = 25%. The risk free rate is 2%. a) make a sketch of (i) capital market line (CML) and (ii) the security market line (SML). Clearly label your axes in both the CML and in the SML, and mark in both plots the location of the AEX-index and the location of risk free asset.
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m stP soo indey CML 91 SAPSO0 index ...
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Authors: Dale ewen, Neill schurter, P. erik gundersen
10th Edition
978-0136116332, 136116337, 9780132830096, 978-0132109277
