According to the CAPM,if the expected return on the market return is 5% and the risk-free rate is 2%,the beta of a portfolio with a 6.5% return is 2.0.

Name: According to the CAPM,if the expected return on the market return is 5% and the risk-free rate is 2%,the beta of a portfolio with a 6.5% return is 2.0.
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Quizplus · Accepted Answer

Rearranging equation 8.3,we compute the beta on this portfolio as follows,F1F1F1S1F1F1F10 = 0.065 - 0.02/(0.05 - 0.02).Hence,F1F1F1S1F1F1F10 = 1.5.

According to the CAPM,if the Expected Return on the Market