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PLEASE HELP CONFUSED In the CAPM world, an individual risky asset A has the following characteristics: and the risk-free rate is 2%. What is the
PLEASE HELP CONFUSED
In the CAPM world, an individual risky asset A has the following characteristics: and the risk-free rate is 2%. What is the expected market return in this economy?
(2) Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with . The following information is also given: , What is the equilibrium risk-free rate in this economy?
Round your final answer to one decimal place if you use percentage, or three decimal places if you don't use percentage (e.g. 20.5\%, or 0.205).
sorry, i meant to only post question 2. heres additional information
Suppose in a hypothetical economy, there exist two financial assets A and B, and their returns are perfectly negative correlated with PAB = -1. The following information is also given: E(A) = 8%, E(B) = 2%, A = 15%, Op = 9%. What is the equilibrium risk- free rate in this economy? (6 points) ts DX Focus Step by Step Solution
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