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Suppose there are two independent economic factors, M 1 and M 2 . The risk - free rate is 7 % , and all stocks
Suppose there are two independent economic factors, and The riskfree rate is and all stocks have independent firm specific components with a standard deviation of Portfolios A and are both well diversified. Required: What is the expected returnbeta relationship in this economy? Do not round intermediate calculations. Round your answers to decimal places. Expected returnbeta relationship
Suppose there are two independent economic factors, and The riskfree rate is and all stocks have independent firm
specific components with a standard deviation of Portfolios A and are both well diversified.
Required:
What is the expected returnbeta relationship in this economy? Do not round intermediate calculations. Round your answers to
decimal places.
Expected returnbeta relationship
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