Question: Question 6 3 points Saved Suppose that the spot exchange rate is $1.5/, that the beta on the forward market return (i.e., buying 1 forward)

 Question 6 3 points Saved Suppose that the spot exchange rate

Question 6 3 points Saved Suppose that the spot exchange rate is $1.5/, that the beta on the forward market return (i.e., buying 1 forward) is 1, and that the expected dollar rate of return on the market portfolio in excess of the dollar risk-free interest rate is 5%. What is the expected profit or loss on a forward sale of 10,000 using CAPM? O a.-$750 O b.-$1,575 c. $750 O d. $1,575

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