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The S&P500 expected return is 18% and 3 Month T-bill rate is 4% currently. MSFT (Microsoft) has an expected return of 15% and a systematic
The S&P500 expected return is 18% and 3 Month T-bill rate is 4% currently.
MSFT (Microsoft) has an expected return of 15% and a systematic risk of beta =0.6.
NVDA(Nvidia) has an expected return of 20% and a systematic risk of beta=1.8.
According to CAPM,
what are the alphas of MSFT and NVDA, respectively?
what are the ratios of reward-per-unit-of-systematic-risk of MSFT and NVDA, respectively?
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Capital Failure Rebuilding Trust In Financial Services
Authors: Nicholas Morris , David Vines
1st Edition
0198712227,019102077X
