Question
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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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
