Determine capm as a reference investment strategy

Reference no: EM131795544

Problem: CAPM as a reference investment strategy

Assuming expected return follows the Capital Asset Pricing Model (CAPM), please reconstruct following assets/ investment strategies using two basic assets: T-Bill and S&P500 Index.

(1) An investment with the beta of 1.5;

(2) A portfolio with the beta of 0.5;

Reference no: EM131795544

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