What is the reward-to-risk ratio in equilibrium

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Reference no: EM132916416

Discussion Questions -

What type of risk is relevant for determining the expected return?

What is the difference between systematic and unsystematic risk?

What is the SML? What is the CAPM?

Consider an asset with a beta of 1.2, a risk-free rate of 5% and a market return of 13%.

What is the reward-to-risk ratio in equilibrium?

What is the expected return on the asset?

Reference no: EM132916416

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