Finance, risk free rate

User Generated

lbav

Business Finance

Description

Suppose you observe the following situation: 
Security Pete Corp. Beta 1.35, expected return 0.145. Security Repete Co. Beta 1.04, expected return 0.118. 

Assume these securities are correctly priced. Based on the CAPM, what is the risk-free rate?

 
 
 
 


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Explanation & Answer


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