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pls help thank you. Question 3 (8 Marks): Velson Ltd has an expected return of 20% and standard deviation of 35%. BTEC Ltd has an
pls help thank you.
Question 3 (8 Marks): Velson Ltd has an expected return of 20% and standard deviation of 35%. BTEC Ltd has an expected return of 25% and standard deviation of 38%. Velson Ltd has a beta of 0.85 and BTEC Ltd has a beta of 1.20. The correlation coefficient between Velson Ltd and BTEC Ltd is +0.70. The standard deviation of the market return is 12%. Using the Capital Asset Pricing Model formula, calculate: (i) the market portfolio's expected rate of return and; (ii) the risk-free rate. [ 8 Marks)Step by Step Solution
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