Based on the capital asset pricing model with a risk-free

Reference no: EM13588939

a. Estimate beta for each of the following securities assuming that the standard deviation of returns for the market portfolio (m) is 8.0 percent.

b. Based on the Capital Asset Pricing Model, with a risk-free rate of 7 percent and a market risk premium (rm - rf) of 8.8 percent, which of the securities, P, Q, R appear to be attractive investments?

Reference no: EM13588939

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