Question
You observe the following: M = 20%, E (rM ) = 8%, rf = 4%, i,M = 1. When you regress ri on rM ,
You observe the following: M = 20%, E (rM ) = 8%, rf = 4%, i,M = 1. When you regress ri on rM , theR2 is 25%. SUPPOSE THE CAPM IS TRUE!
1. What is E (ri)?
2. What is 2i ?
3. What is the Sharpe ratio of asset i?
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The Routledge Handbook Of Financial Literacy
Authors: Gianni Nicolini, Brenda J. Cude
1st Edition
0367457776, 978-0367457778
