Expected return-beta relationship from the capm

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Reference no: EM131768934

1) What is the economic/intuitive justification for the expected return-beta relationship from the CAPM

2) In general, how do you find the optimal risky portfolio in the Markowitz portfolio selection model? In particular, what do you maximize (define!) by changing what, given which constraints?

3) Explain a mortgage without prepayment penalty in terms of options.

Reference no: EM131768934

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