Question
If the simple CAPM is valid, which of the following situations are possible? Explain. Consider each situation independently. a) Portfolio Expected Return Beta A 8%
If the simple CAPM is valid, which of the following situations are possible? Explain. Consider each situation independently.
a)
Portfolio Expected Return Beta
A 8% 1.4
B 11% 1.2
b)
Portfolio Expected Return Standard Deviation
Risk-free 5% 0%
Market 9% 18%
A 8% 17%
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
