Question: (d) (10 points) Consider asset A with CAPM BA = 0.5 and expected return 4%. Assuming a risk-free rate of 1% and an expected

(d) (10 points) Consider asset A with CAPM BA = 0.5 and expected return 4%. Assuming a risk-free rate of 1% and an expected market return of 5%, should an investor buy or short-sell asset A?

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