What is the expected return of asset

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Reference no: EM131584564

1. Firms are exposed to all of the following forms of exchange rate exposure except...

accounting

transaction

economic

translation

2. Assuming that the CAPM holds, what is the expected return of asset A whose β equals 0.5? Assume that the risk-free rate equals 1.2% and expected return of Market Portfolio of 5%.

(a) 3.1%

(b) 3.8%

(d) 5.0%

Reference no: EM131584564

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