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Consider the following information of Asset A. B. and the Market 1. calculate the s of assets A and B 2. find the risk-free rate

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Consider the following information of Asset A. B. and the Market 1. calculate the s of assets A and B 2. find the risk-free rate if asset A is fairly priced by the CAPM model 3. assume CAPM holds, determine whether asset B is overpriced or underpriced 4. calculate the beta of the portfolio if you invest 0.1 in asset A,0.2 in asset B,0.3 in the Market and 0.4 in the risk-free asset 5. If CAPM holds, which stock ( A or B ) has more total risk? Which stock has the most systematic risk? Which one has the most unsystematic risk? Explain

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