Question
The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is aggressive and his beta () is1.25. a) What is
The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is aggressive and his beta () is1.25.
a) What is the required rate of return for this investment using the CAPM approach?
b) What if the () is0.75, but the risk-free rate is 5% and the market return is 10.5%?
**excel formulas if any please. and steps
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
