Question: can i please get help with this tricky question step by step An investor has the choice of the following assets that earn rates of
An investor has the choice of the following assets that earn rates of return as follows in each of the four possible states of the world: a) The return of the market portfolio is 5.79472%. Determine the market price of risk assuming CAPM holds. Define all terms used. (10 marks) b) If you were given the volatility of the market portfolio of 0.674%. Determine the market price of risk assuming CAPM holds. (10 marks)
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