Suppose I fit the CAPM model for Apple stock using the market portfolio and the estimation result is as below: rApple = 0.03 + 2*r Market + E If you would like to construct a portfolio with zero market beta with positive average return, how would you like to invest using the Apple stock and the market portfolio? O None of the other answers are correct. O Short sell $100 of market portfolio and long $50 of Apple and $50 of lending O Long $100 of Apple and short sell $50 of market portfolio and $50 of borrowing O Long $100 of market portfolio and short sell $50 of Apple and $50 of borrowing Short sell $100 of Apple and long $50 of market portfolio and $50 of lending

Suppose I fit the CAPM model for Apple stock using the market portfolio and the estimation result is as below: rApple = 0.03 + 2*r Market + E If you would like to construct a portfolio with zero market beta with positive average return, how would you like to invest using the Apple stock and the market portfolio? O None of the other answers are correct. O Short sell $100 of market portfolio and long $50 of Apple and $50 of lending O Long $100 of Apple and short sell $50 of market portfolio and $50 of borrowing O Long $100 of market portfolio and short sell $50 of Apple and $50 of borrowing Short sell $100 of Apple and long $50 of market portfolio and $50 of lending

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 8P

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Refer to i and j in the picture. I need answers to those with the steps.
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Please answer fast I give you upvote.
PLs refer to attached image. Pls show formula and solution not in spreadsheet form,
Heer Don't upload any image please
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