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If a company has an expected return of 20% while the risk-free rate is 4% and the expected return on the market is 16%, what
- If a company has an expected return of 20% while the risk-free rate is 4% and the expected return on the market is 16%, what is the companys Beta?
- Do the weights or components of the market portfolio change as the risk-free rate changes? Explain (a diagram may be helpful)
- Describe a risk which is not priced by the CAPM? Explain why bearing this risk offer no return in the CAPM?
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
