Question
Suppose that CAPM assumptions hold. Investment funds A, B and C have the following portfolio betas: = 0.1, = 0.4 and = 1. From the
Suppose that CAPM assumptions hold. Investment funds A, B and C have the following portfolio betas: = 0.1, = 0.4 and = 1. From the historical data we know that the expected returns on their portfolios are = 3.3%, = 4.2% and = 6%. Use this information to find the risk-free rate of return and the market risk premium.
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
