A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return. Begin your answer with Consistent or Inconsistent followed bv vour explanation. A security with a beta of 1.0 earned a return of 15% last year when the market portfolio earned a return of only 9%. Begin your answer with Consistent or Inconsistent followed by your explanation.

A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return. Begin your answer with Consistent or Inconsistent followed bv vour explanation. A security with a beta of 1.0 earned a return of 15% last year when the market portfolio earned a return of only 9%. Begin your answer with Consistent or Inconsistent followed by your explanation.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 3Q: Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation...

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Assume that using the Security Market Line(SML) the required rate of return(RA)on stock A is found to be halfof the required return (RB) on stock B. The risk-free rate (Rf) is one-fourthof the required return on A. Return on market portfolio is denoted by RM. Find the ratioof betaof A(A) tobeta of B(B). Thank you for your help.
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