excel3
Feb 12, 2011, 10:36 PM
If the simple CAPM is valid, say whether the situation is possible or not?
(I) risk free rate 10%
Market return 18%, stdev 24%
Portfolio A, expected return 20%, stdev 22%
(ii) Portfolio A, expected return 30%, stdev 35%
Portfolio B, expected return 40%, stdev 25%
(I) risk free rate 10%
Market return 18%, stdev 24%
Portfolio A, expected return 20%, stdev 22%
(ii) Portfolio A, expected return 30%, stdev 35%
Portfolio B, expected return 40%, stdev 25%