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QUESTION
Assume that the CAPM is correct and the Betas of securities X and Y are 0.8 and 1.2, respectively. The expected returns for these securities are15%...
Assume that the CAPM is correct and the Betas of securities X and Y are 0.8 and 1.2, respectively. The expected returns for these securities are15% and 20%. This implies that the risk free rate is closest to: a. 5.0% b. 10.0% c. 12.5% d. 15%
