Asset expected return standard deviation beta residual variance 1 0 13 A 2 0 49 2 0 05 B 0 0 36 3 C 0 15 1 0 4 0 08 0 113 D 0 suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at a riskless rate of interest, find A B C D in the table

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Question: Asset expected return standard deviation beta residual variance 1 0.13 A 2 0.49 2 0.05 B 0 0.36 3 C 0.15 1 0 4 0.08

Asset	expected return	standard deviation	beta	residual variance
1	0.13	A	2	0.49
2	0.05	B	0	0.36
3	C	0.15	1	0
4	0.08	0.113	D	0

suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at a riskless rate of interest, find A B C D in the table.

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