(A small world) Consider a world in which there are only two risky assets, A and...
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(A small world) Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets respectively consist of 25% and 75% supply in the market; that is M = 0.25A +0.75B. The following information is known: TF = 0.02, ² 0.06, AB = O 0.02, o 0.05, and 0.05. Thus according to the CAPM, what are the numerical values of the expected return TM = Α A and B? = (A small world) Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets respectively consist of 25% and 75% supply in the market; that is M = 0.25A +0.75B. The following information is known: TF = 0.02, ² 0.06, AB = O 0.02, o 0.05, and 0.05. Thus according to the CAPM, what are the numerical values of the expected return TM = Α A and B? =
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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