You have been provided the following data on the securities of three firms and the...
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Accounting
- You have been provided the following data on the securities of three firms and the market:
| Security | E[Ri] | s.d (Ri) | Corr(Ri, Rm) | Beta i |
| Firm one | _____A____ | _____B____ | 1.0 | 0.85 |
| Firm two | _____C____ | 0.18 | 0.7 | _____D____ |
| Firm three | _____E____ | 0.05 | _____F_____ | 0.8 |
| The market | 0.10 | 0.04 | 1.2 | _____G_____ |
| Risk-free asset | 0.08 | 0 | 0 | 0 |
Assume that the CAPM and SML are true. Fill in the missing values in the table. (Show the calculation process and results)
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