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NO additional information was provided. 5) Assume a fictitious world where there are four stocks: General Electric (GE) CitiGroup (C) British Petroleum (BP) FaceBook (FB)
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5) Assume a fictitious world where there are four stocks: General Electric (GE) CitiGroup (C) British Petroleum (BP) FaceBook (FB) The market is in equilibrium where CAPM assumptions hold (e.g. homogeneous expectations, efficient markets, zero transaction costs, etc.) Express the equilibrium condition for this universe of stocks in terms of each stock's return contribution and risk contribution. For notation purposes, you can use the symbols rmkt & Omkt to represent the market's return & risk and reto represent the risk-free rate. (Note: Students can either type or neatly hand-write the relationship and upload a picture or file containing the expression.) (15 pts) Upload Choose a File 5) Assume a fictitious world where there are four stocks: General Electric (GE) CitiGroup (C) British Petroleum (BP) FaceBook (FB) The market is in equilibrium where CAPM assumptions hold (e.g. homogeneous expectations, efficient markets, zero transaction costs, etc.) Express the equilibrium condition for this universe of stocks in terms of each stock's return contribution and risk contribution. For notation purposes, you can use the symbols rmkt & Omkt to represent the market's return & risk and reto represent the risk-free rate. (Note: Students can either type or neatly hand-write the relationship and upload a picture or file containing the expression.) (15 pts) Upload Choose a FileStep by Step Solution
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