Question: Consider two securities A and B both of which

Consider two securities A and B, both of which are exposed to a common risk factor (thus the market price of risk should be the same for them). The expected returns are 9% and 12%, respectively. The volatility of A is 10%. The risk free rate is 3%. What is the volatility of B?


View Solution:


Sale on SolutionInn
Sales0
Views181
Comments
  • CreatedAugust 26, 2013
  • Files Included
Post your question
5000