What is the beta of an efficient portfolio

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Given the facts of Problem, and that the common stock of the Rapid Rolling Corporation has E(Rk) = 25% and ol = 52%, what is the systematic risk of the common stock? What is its unsystematic risk?

Problem
Given risk-free borrowing and lending, efficient portfolios have no unsystematic risk. True or false? Explain? What is the beta of an efficient portfolio with E(Rd= 20% if Rf = 5%, E(Rm) = 15%, and o- „, = 20%? What is its rr? What is its correlation with the market?

Reference no: EM131247215

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