question archive You have been provided the following data on the securities of three firms and the market: Security E[Ri] s
You have been provided the following data on the securities of three firms and the market: Security E[Ri] s
Subject:FinancePrice:2.86 Bought7
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)
