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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.30 .140 Repete Co. .99 .113 Assume these securities are correctly priced. Based
| Suppose you observe the following situation: |
| Security | Beta | Expected Return | ||||
| Pete Corp. | 1.30 | .140 | ||||
| Repete Co. | .99 | .113 | ||||
| Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? 2.68% is not the right answer What is the risk-free rate? 11.39% is not the answer
|
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
