Question
In an economy there are 2 risky assets X and Y and a risk-free asset Z. The two risky assets are in equal proportion
In an economy there are 2 risky assets X and Y and a risk-free asset Z. The two risky assets are in equal proportion in the market i.e. M-1/2 (X+Y). It is also known that r,-0.1, o,-0.02, o,-0.04, 0, 0.01 and r=0.18 (r, and r are the risk free and the market return) (i) Find the values for . B. By (ii) Find rx and r, using the CAPM model
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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