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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.10 .120 Repete Co. .79 .093 Assume these securities are correctly priced. Based
| Suppose you observe the following situation: |
| Security | Beta | Expected Return | ||||
| Pete Corp. | 1.10 | .120 | ||||
| Repete Co. | .79 | .093 | ||||
| Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market?
What is the risk-free rate? |
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Before You Buy The Homebuyers Handbook For Todays Market
Authors: Michael Corbett, Jim Gillespie
1st Edition
0452296803, 978-0452296800
