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Xercises of Capital Asset Pricing Theory - The expected return rate of the market portfolio formed by the existing A and B stocks is 17.5%,
Xercises of Capital Asset Pricing Theory - The expected return rate of the market portfolio formed by the existing A and B stocks is 17.5%, and the standard deviation of the market portfolio is o.1. The risk-free rate of return is 2.5%, the expected rate of return of A is 22%, and the expected rate of return of B is 16%. Question I: Calculate the risk coefficients of A and B. Question II: the covariance between A and Market Portfolio
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