Question: Problem 4 Part A.3 (Exercise CFA n.10.a the book) Assume that both X and Y are well-diversfied port- folios and the risk-free rate is 8%

Problem 4 Part A.3 (Exercise CFA n.10.a the book) Assume that

Problem 4 Part A.3 (Exercise CFA n.10.a the book) Assume that both X and Y are well-diversfied port- folios and the risk-free rate is 8% Portfolio Expected Return Beta 16% 12% 0.25 In this situation you could conclude that portfolios X and Y are in equilibrium offer an arbitrage opportunity are both underpriced are both fairly priced

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