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lp centre D Question 3 The following holds in a market where investors are exposed to only one risk factor Security FB GOOG Expected return
lp centre D Question 3 The following holds in a market where investors are exposed to only one risk factor Security FB GOOG Expected return 12% 8% Beta 1.6. 0.5 41M 10 pts If the T-bill rate is 3.5% p.a., explain whether these two securities are correctly priced relative to each other. What must the risk-free rate be if they are correctly priced
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