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Unformatted text preview: Capital Market Line (CML) , thus R Pr P = R Mr M . CAPM Proof Thus R M + R X 1 + r M ( 1 + ) 1 + = R Mr M CAPM Proof Thus R M + R X 1 + r M ( 1 + ) 1 + = R Mr M so R M + R Xr r 1 + = R Mr CAPM Proof Thus R M + R X 1 + r M ( 1 + ) 1 + = R Mr M so R M + R Xr r 1 + = R Mr solving for R X gives R X = r + ( R Mr )...
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This note was uploaded on 09/18/2011 for the course ACTSC 372 taught by Professor Maryhardy during the Winter '09 term at Waterloo.
 Winter '09
 MARYHARDY

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