EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 9, Problem 16PS
Summary Introduction

Adequate information:

    Portfolio Expected return Standard deviation
    Risk free 10% 0%
    Market 18 24
    Portfolio A 16 22

To determine:

Whether the situations set forth in the question are possible if the simple CAPM stands valid.

Introduction:

Portfolio involves financial asset grouping viz. currencies, commodities, bonds, stocks and cash equivalents. It also comprises of fund counterparts such as closed funds, exchange traded funds and mutual funds. Non-publicly tradable securities such as private, art and real estate investment are also part of portfolios.

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