Expected Return: 13% Risk-Free Interest Rate: 1% Return on Market Portfolio: 10% 1. Using CAPM...

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Finance

Expected Return: 13%

Risk-Free Interest Rate: 1%

Return on Market Portfolio: 10%

1. Using CAPM , what is the beta:

2. If the covariance of the ROR with the market port. return decreases by 50%, what will it's beta be?

3. What is the new expected return?

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