Assume these securities are correctly priced based on the
Suppose you observe the following situation:
Security Beta Expected Return
Pete Corp. 1.85 .195 Repete Co. 1.54 .168
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market?
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we also look at various sources of performance information the next section explores the kinds of e that commonly occur
suppose you observe the following situationsecuritynbspnbspnbspnbspnbspnbspbeta nbsp nbsp nbspexpected returnpete
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