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If the simple CAPM is valid, is the following situation possible? (Hint: Market portfolio has the highest sharpe ratio) Portfolio Expected Return Standard Deviation Risk-free
If the simple CAPM is valid, is the following situation possible? (Hint: Market portfolio has the highest sharpe ratio)
| Portfolio | Expected Return | Standard Deviation | ||
| Risk-free | 10 | % | 0 | % |
| Market | 18 |
| 24 |
|
| A | 16 |
| 22 |
|
|
| ||||
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
