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If risk-free rate is 5%, average risk aversion is 3, and the standard deviation of the market portfolio M is 20%. According to the CAPM
If risk-free rate is 5%, average risk aversion is 3, and the standard deviation of the market portfolio M is 20%. According to the CAPM model, what is the expected return of the market portfolio, M?
14% | ||
15% | ||
16% | ||
17% |
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