Question
Suppose you observe the following situation. Assume the two securities are correctly priced. Based on CAPM, what is the expected return of the market? What
Suppose you observe the following situation. Assume the two securities are correctly priced. Based on CAPM, what is the expected return of the market? What is the risk free rate?
| Security | Beta | Expected Rturn |
| Pete Co. | 1.21 | 10.79% |
| Repete Co. | 0.83 | 8.43% |
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
3rd Edition
0765636891, 9780765636898
