IncorrectQuestion 7 0 / 1 pts Use the following information: Probability w1 w2 w3 state1 0.3333333...

IncorrectQuestion 7

0 / 1 pts

Use the following information:

	Probability	w1	w2	w3
state1	0.3333333	15.00%	8.00%	3.00%
state2	0.3333333	9.00%	5.00%	8.00%
state3	0.3333333	12.00%	7.00%	4.00%
% wealth invested		33.3333%	33.3333%	33.3333%

Assuming that the market rate of return over the next year is expected to be 6.5% and that the risk-free rate is expected to be 2.5%, what must the beta for security A be in order for the CAPM to hold?

between 2.3 and 2.4

between 2.2 and 2.3

less than 2.1

between 2.1 and 2.2

Expert Solution

jeff jeffy answered 1 year ago

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