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give me with details Question: 2 The following table provides your estimates of risk-return characteristics of certain securities. Within the framework of the CAPM, determine
give me with details
Question: 2 The following table provides your estimates of risk-return characteristics of certain securities. Within the framework of the CAPM, determine and explain which of these securities should be bought or sold short if the risk free rate is 12%, expected return on the market portfolio is 18% and the standard deviation of return on market portfolio is 13%. [10 marks] Security Expected return (%) Standard deviation (%) Beta 1.25 24 16 A B D E 35 25 26 16 10 25 1.72 1.80 0.60 0.25 10 3
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