Question: Please state whether the statements below are true or false and explain why. even in the case that the explanation is a formula, please explain
Please state whether the statements below are true or false and explain why. even in the case that the explanation is a formula, please explain what the formula is saying (what the symbols mean etc...)
A. the CAPM model predicts that a stock with a beta of 0 will provide zero expected return. True or false? explain and show any calculation.
B. An investor who invests $10,000 in US treasury bills and $20,000 in a market portfolio will have a portfolio beta of 2 (two). True or false? explain and show any calculations
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