Suppose the assumption behind that the CAPM hold. The risk free rate is 2% and the expected return market is 9% .The standard deviation of the market portfolio is 15% .AAPL has a beta of 1.4 and standard deviation of 35% .Suppose that the standard deviation of your optimal portfolio is 18% . What is its expected return?
Suppose the assumption behind that the CAPM hold. The risk free rate is 2% and the expected return market is 9% .The standard deviation of the market portfolio is 15% .AAPL has a beta of 1.4 and standard deviation of 35% .Suppose that the standard deviation of your optimal portfolio is 18% . What is its expected return?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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