Suppose that there are many stocks in the security market and that the characteristics of...
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Suppose that there are many stocks in the security market and that the characteristics of stocks A and are given as follows: Suppose that it is possible to borrow at the riskfree rate, What must be the value of the riskfree rate? Hint: Think about constructing a riskfree portfolio from stocks A and B Since they have a perfect negative correlation, the rate of return will be the Note: Do not round intermediate calculations. Round your answer to decimal places. Riskfree rate
Suppose that there are many stocks in the security market and that the characteristics of stocks A and are given as follows:
Suppose that it is possible to borrow at the riskfree rate, What must be the value of the riskfree rate? Hint: Think about
constructing a riskfree portfolio from stocks A and B Since they have a perfect negative correlation, the rate of return will be the
Note: Do not round intermediate calculations. Round your answer to decimal places.
Riskfree rate
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