Question
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.70 0.180 Repete Co. 1.39 0.153 Assume these securities are correctly priced. Based
| Suppose you observe the following situation: |
| Security | Beta | Expected Return | ||||
| Pete Corp. | 1.70 | 0.180 | ||||
| Repete Co. | 1.39 | 0.153 | ||||
| Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
