Question

In: Finance

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

  1. For the next 2 questions suppose the following holds:

The CAPM holds and rRF=6%,  rM=12%.

  
What is ri for a security with βi=1.5?

15.0%

16.2%

16.6%

17.2%

17.8%

  1. What is the beta of a security with rA=13.2%?

0.78

0.85

0.95

1.05

1.2

Solutions

Expert Solution

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