what should be a fair expected return for a security that pays $1M if a symmetric coin

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what should be a fair expected return for a security that pays $1M if a symmetric coin falls heads and $0 if it falls tails (according to CAPM)? Assume, risk free rate is zero.

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Posted Date: Feb 22, 2023 11:56 PM

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what should be a fair expected return for a security that pays $1M if a symmetric coin

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According to the CAPM the expected return on a security is equal to the riskfree rate plus the produ... View the full answer

Finance Applications and Theory

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