Search results

Thanks so much for your response, it helps a lot in getting convidence with the formulas!

I am looking at question 5.5: The riskless rate of interes is r=5% and the market portfolio is characterized by E(Rm) = 13% and SD=15%. CAMP implies that the expected return of stocks A, B and C are: The answer is E(Ra) = -3%, b= 5% and c=21% A and B I get using = E(Ri)= r +Beta i (E(Rm)-5)...