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Suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at the riskless rate of interest. Asset Standard Deviation Beta Expected
Suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at the riskless rate of interest. Asset Standard Deviation Beta Expected Return 16% Residual Variance 0.0100 1.00 B 20% 1.50 0.0144 OB 10% 0.75 0.0064 Mc Riskfreert Market MM 0% 0.00 0.0000 0.0000 OM 1.00 Find the unknowns in the above table
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