Question
Expected Return: 13% Risk-Free Interest Rate: 1% Return on Market Portfolio: 10% 1. Using CAPM , what is the beta: 2. If the covariance of
Expected Return: 13%
Risk-Free Interest Rate: 1%
Return on Market Portfolio: 10%
1. Using CAPM , what is the beta:
2. If the covariance of the ROR with the market port. return decreases by 50%, what will it's beta be?
3. What is the new expected return?
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Options Futures And Other Derivatives
Authors: John C. Hull
3rd Edition
0131864793, 9780306457555
