Question
i.What is the key result of CAPM? (3 marks] ii.The Johannesburg Stock exchange (JSE) consists of all listed companies in South Africa. Suppose the JSE
i.What is the key result of CAPM? (3 marks]
ii.The Johannesburg Stock exchange (JSE) consists of all listed companies in South Africa. Suppose the JSE has only 12 million investors. Also assume that an investor holds 5% of shares in Capitec Bank. NB (Capitec is listed on the JSE)
Required:
a.Apply the logic of the key result of the CAPM to explain the JSE as a marketof risky assets [7 marks]
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Financial & Managerial Accounting
Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello
15th Edition
0073526991, 9780073526997
