Question
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 13%, and on
| Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 13%, and on the zero-beta portfolio it is 4%. What is the expected return on a portfolio with a beta of 0.9? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| Expected return | % |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
