What can be said about the portfolio performance

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Reference no: EM132014375

1) Critically relate Capital Asset Pricing Theory and Arbitrage Pricing Theory.

2) CAPM was estimated for some period in the market. The actual return of two portfolios is given below:

Portfolio A: Actual Return = 14% Beta =0.8

Portfolio B: Actual Return =20% Beta = 1.2

The equation of CAPM is Ri = .07 + 0.10 ?i

What can be said about the portfolio’s performance?

Reference no: EM132014375

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