# Question

For the data in Problem 1, what is the differential return if beta is the appropriate measure of risk?

In Problem 1

In Problem 1

## Answer to relevant Questions

Assume you can lend and borrow at 10% and have $5,000 in income in each of two periods. What is your opportunity set? Using the two-period consumption model, solve the following problem. Assume you can lend and borrow at 5% and your income is $50 in each period. Derive the opportunity set and add your indifference curves. For the data in Table, suppose an investor desires an expected variance less than 8. What is the minimum number of securities for such a portfolio? Number of Securities ... Expected Portfolio ...Assume the information given in Problem 1 but that short sales are not allowed. Set up the formulation necessary to solve the portfolio problem. In Problem 1 Assume that the zero-beta form of the capital asset pricing model (CAPM) is appropriate. What is the differential return for the funds shown in Problem 1 if Rz = 4%? In Problem 1Post your question

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