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According to your personal analysis, the expected return of UBER should be 15.6%. However, this is...

According to your personal analysis, the expected return of UBER should be 15.6%. However, this is not necessarily what the CAPM is saying. The expected return on the market is 12%, the risk-free rate is 1.9%, and the beta for UBER is 1.11.

You want to exploit the mispricing using an arbitrage portfolio and the recipe from the book. Give the weight in the risk-free asset in percentage.

{Give your answer as a percentage with 2 decimals, e.g., if the answer is 0.345224 (or 34.5224%) , enter 34.52 as your answer.}

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jeff jeffy answered 2 years ago
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