The beta of an asset is equal to 0. Discuss what the asset must be.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 08, 2012 01:31 AM

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The beta of an asset is equal to 0. Discuss what the asset must be.

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Following the CAPM prediction R cs R rf ER M R rf R rf 0 ER M R rf R rf Therefore the exp...View the full answer

Fundamentals of corporate finance

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