Compare to the expected return on the market

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According to CAPM, how would the expected return on a stock with a beta of 1.5 compare to the expected return on the market?

 

You have $75,000 to invest and want to put together a two-asset portfolio consisting of U.S. T-bills and a risky asset. If the risky asset has a beta of 0.95 and you want your portfolio to be only three-fourths as risky as the market, how much should you invest in the risky asset?

Reference no: EM131051786

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