ESS. OF INVESTMENTS - ETEXT ACCESS CARD
11th Edition
ISBN: 9781265909055
Author: Bodie
Publisher: MCG
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Chapter 7, Problem 10CP
Assume that both X and Y are well-diversified port folios and the risk-free rate is 8%.
Portfolio Expected Return Beta
X 16% 100
Y 12 0 25
In this situation you could conclude that portfolios X and Y. (LO 7-4)
a. Are in equilibrium.
b. Offer an arbitrage opportunity.
c. Are both underpriced.
d. Are both fairly priced.
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Chapter 7 Solutions
ESS. OF INVESTMENTS - ETEXT ACCESS CARD
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