The CAPM was estimated for a certain period in the market. The actual returns of two portfolios

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The CAPM was estimated for a certain period in the market. The actual returns of two portfolios are as follows:

Portfolio A: Actual return =14% Beta=0.8

Portfolio B: Actual return =20% Beta=1.2

The equation of the CAPM is R1=0.07+0.10 Beta

Based on the above information, comment on the portfolio performance.

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 06, 2024 11:53 AM

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The CAPM was estimated for a certain period in the market. The actual returns of two portfolios

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Based on the CAPM Capital Asset Pricing Model and the information provided we can analyze how each p... View the full answer

Income Tax Fundamentals 2013

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