Tammy, Corporate Finance

rf is 5%
rM is 10%
according to the SML and the CAPM, an asset with a beta of -2 has a required return of negative 5% (=5-2(10-5).
can this be possible?
Is this a negative asset with risk
Why would someone invest in this negative investment?
Posted Date: 2/15/2013 3:15:48 AM | Location : United States

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