Consider the following data for securities A and B: $\bar { R } _ { A } = 20 \%$ ; $\bar { R } _ { B } = 10 \%$ ; $\beta _ { \mathrm { A } } = 1.5$ ; $\beta _ { B } = 0.5$ .
Assume that the zero-beta CAPM holds and that all securities are in equilibrium.Plot the Security Market Line.Be sure to label all points.

Question

Quizplus · Accepted Answer

The Answer of Consider the following data for securities A and B: $\bar { R } _ { A } = 20 \%$ ; $\bar { R } _ { B } = 10 \%$ ; $\beta _ { \mathrm { A } } = 1.5$ ; $\beta _ { B } = 0.5$ .
Assume that the zero-beta CAPM holds and that all securities are in equilibrium.Plot the Security Market Line.Be sure to label all points.

Consider the Following Data for Securities a and B RˉA=20%\bar { R } _ { A } = 20 \%RˉA​=20%

Consider the Following Data for Securities a and B $\bar { R } _ { A } = 20 \%$