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please help thank you 13 Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 6%. Suppose also that the
please help thank you
13
Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 6%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 14%. According to the capital asset pricing model: a. What is the expected rate of return on the market portfolio? (Round your answer to 2 decimal places.) b. What would be the expected rate of return on a stock with =0 ? (Round your answer to 2 decimal places.)Step by Step Solution
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