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Consider the following information: Expected Return 7% Portfolio Risk-free Market A Return Required: a. Calculate the return predicted by CAPM for a portfolio with a
Consider the following information: Expected Return 7% Portfolio Risk-free Market A Return Required: a. Calculate the return predicted by CAPM for a portfolio with a beta of 2.2. (Round your answer to 2 decimal places.) 13.4 12.0 Alpha % b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Yes Beta 0 1.0 2.2 % c. If the simple CAPM is valid, is the situation above possible? 
Consider the following information: Required: a. Calculate the return predictod by CAPM for a portfolio with a beta of 2.2 . (Round your answer to 2 decimal places.) b. What is the olpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 de c. If the simple CAPM is valid, is the situation above possible? Yes
Consider the following information: Expected Return 7% Portfolio Risk-free Market A Return Required: a. Calculate the return predicted by CAPM for a portfolio with a beta of 2.2. (Round your answer to 2 decimal places.) 13.4 12.0 Alpha % b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Yes Beta 0 1.0 2.2 % c. If the simple CAPM is valid, is the situation above possible?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
