Suppose the expected market return E(R M ) equals 8%. (a) Compute CAPM betas for the stocks
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Suppose the expected market return E(RM) equals 8%.
(a) Compute CAPM betas for the stocks in problem 1.
(b) Are the data in problem 1 consistent with both the CAPM and the APT?
Data from problem 1
Consider the following APT model:
Suppose that the riskless rate Rf = 5%, and we have the following data for three stocks.
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Related Book For 
Investment Valuation And Asset Pricing Models And Methods
ISBN: 9783031167836
1st Edition
Authors: James W. Kolari, Seppo Pynnönen
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