Question: 3. Suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at a riskless rate of interest. Complete the blanks in

3. Suppose that the relevant equilibrium model is the CAPM with

3. Suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at a riskless rate of interest. Complete the blanks in the following table: Asset Expected Return Standard Deviation Beta Residual Variance 0.00 0.49 0.00 0.36 0.08 0.12 0.1 0.05 12

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