In an economy there are 2 risky assets X and Y and a risk-free asset Z....
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In an economy there are 2 risky assets X and Y and a risk-free asset Z. The two risky assets are in equal proportion in the market i.e. M-1/2 (X+Y). It is also known that r,-0.1, o,-0.02, o,-0.04, 0, 0.01 and r=0.18 (r, and r are the risk free and the market return) (i) Find the values for ². B. By (ii) Find rx and r, using the CAPM model In an economy there are 2 risky assets X and Y and a risk-free asset Z. The two risky assets are in equal proportion in the market i.e. M-1/2 (X+Y). It is also known that r,-0.1, o,-0.02, o,-0.04, 0, 0.01 and r=0.18 (r, and r are the risk free and the market return) (i) Find the values for ². B. By (ii) Find rx and r, using the CAPM model
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i To find the values of Beta B and Beta B we need to use the Capital Asset Pricing Model CAPM formul... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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