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Suppose the mean rate of returns for the following three risky assets A, B, and C are O.08, 0.10, and 0.12, respectively. It is also
Suppose the mean rate of returns for the following three risky assets A, B, and C are O.08, 0.10, and 0.12, respectively. It is also known that E(rM) = 0.14 and -0.16, where M refers to the market portfolio, which is efficient. Moreover, the slope of the capital market line is 7/16. (Keep 4 decimal places to all answers, e.g. xxx.1234.) (a) Find the risk-free rate r. (b) Find the respective beta values A, B , and c. BA: : BC (c) Determine oM for i A, B, C, respectively. AM OBM
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