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We know the following two premiums: E(rM) - E(rA) = 0:4 and E(rA) -rf = 0.1. (a) Calculate beta A. (b) If security B has
We know the following two premiums: E(rM) - E(rA) = 0:4 and E(rA) -rf = 0.1.
(a) Calculate beta A.
(b) If security B has beta B = 1 and E(rB)- rf = 0.5. What is Alpha B?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
