Components of the market portfolio change

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-If a company has an expected return of 20% while the risk-free rate is 4% and the expected return on the market is 16%, what is the company's Beta?

-Do the weights or components of the market portfolio change as the risk-free rate changes? Explain (a diagram may be helpful)

-Describe a risk which is not priced by the CAPM? Explain why bearing this risk offer no return in the CAPM?

Reference no: EM133060016

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Components of the market portfolio change : -If a company has an expected return of 20% while the risk-free rate is 4% and the expected return on the market is 16%, what is the company's Beta?
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