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questions 3 and 4 please Suppose that all the unrealistic assumptions of the CAPM are true (the CAPM is valid)!!! The market portfolio has an

questions 3 and 4 please image text in transcribed
Suppose that all the unrealistic assumptions of the CAPM are true (the CAPM is valid)!!! The market portfolio has an expected return equal to 15% and the risk free rate is 5%. We are mainly interested in 2 securities in the market; stocks A and B. The beta of stock A is 1.8 and the expected return of stock B is 10%. 1. Estimate the expected return of stock A. 2. Estimate the beta of stock B. 3. Estimate the expected return of the optimal risky portfolio. 4. Estimate the alpha of stock A

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