CAPM Using the CAPM, show that the ratio of the risk premiums on two assets is equal

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CAPM Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 03, 2011 03:29 AM

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Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.
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CAPM Using the CAPM, show that the ratio of the risk premiums on two assets is equal

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We know that the rewardtorisk ratios for all assets must be equal This can be ...View the full answer

Fundamentals of Corporate Finance

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