Question
Security Beta Expected Return Peat Co. 1.15 10.0 Re-Peat Co. .90 9.0 Assume these securities are correctly priced. Based on the CAPM, what is the
| Security | Beta | Expected Return |
| Peat Co. | 1.15 | 10.0 |
| Re-Peat Co. | .90 | 9.0 |
| Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
| Expected return | % |
| Risk-free rate | % |
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Lending Investments And The Financial Crisis
Authors: Elena Beccalli, Federica Poli
1st Edition
1349564982, 978-1349564989
