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QUESTION 2 You are tasked with analyzing the performance of 3 assets. The data you have available include the graphs of each asset's historical return
QUESTION 2 You are tasked with analyzing the performance of 3 assets. The data you have available include the graphs of each asset's historical return as compared with the market each month and the observed arithmetic average of each asset's monthly returns. a) Calculate the historic effective annual return for each asset. b) Using CAPM, estimate the required annual return for each asset A, B and C. Explain your reasoning for each. c) If each asset continues to perform similarly to your answer in part a, indicate for Asset A and Asset B whether you'd recommend investors to buy or sell the asset. d) Explain your rationale for your decision in Part c. if you don't quite have the numbers, explain how you would decide. QUESTION 2 You are tasked with analyzing the performance of 3 assets. The data you have available include the graphs of each asset's historical return as compared with the market each month and the observed arithmetic average of each asset's monthly returns. a) Calculate the historic effective annual return for each asset. b) Using CAPM, estimate the required annual return for each asset A, B and C. Explain your reasoning for each. c) If each asset continues to perform similarly to your answer in part a, indicate for Asset A and Asset B whether you'd recommend investors to buy or sell the asset. d) Explain your rationale for your decision in Part c. if you don't quite have the numbers, explain how you would decide
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