For the next 2 questions suppose the following holds: The CAPM holds and rRF=6%, rM=12%. What...

For the next 2 questions suppose the following holds:

The CAPM holds and r_RF=6%, r_M=12%.

What is r_i for a security with β_i=1.5?

		15.0%
		16.2%
		16.6%
		17.2%
		17.8%

What is the beta of a security with r_A=13.2%?

		0.78
		0.85
		0.95
		1.05
		1.2

Expert Solution

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jeff jeffy answered 6 months ago

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