CAPM - = 0.8) R B (Asset B, E(R B ) = 20%, B = 2) R C...

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3 0 0.5 1 1.5 2 2.5 0 5 10 15 20 25 beta (systematic risk) Return R f (Risk Free Asset, Treasury-Bills, E(R f ) = 8%, β f = 0) R m (Market, E(R m ) = 14%, β m = 1) Security Market Line R A (Asset A, E(R A ) = 12.8%, β A
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Unformatted text preview: = 0.8) R B (Asset B, E(R B ) = 20%, B = 2) R C (Asset C, E(R C ) = 15%, C = 2) R D (Asset D, E(R D ) = 15%, D = 0.25 Undervalued Overvalued...
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