Look again at the set of efficient portfolios that we calculated in Section 8.1. a. If the

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Look again at the set of efficient portfolios that we calculated in Section 8.1.

a. If the interest rate is 10 percent, which of the four efficient portfolios should you hold?

b. What is the beta of each holding relative to that portfolio?

c. How would your answers to (a) and (b) change if the interest rate was 5 percent?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 04:26 AM

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Look again at the set of efficient portfolios that we calculated in Section 8.1. a. If the

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Principles of Corporate Finance

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