Calculate the equilibrium expected return on a security.
Not what you're looking for? Search our solutions OR ask your own Custom question.
The risk free rate is 5% while the market portfolio's expected return is 12%.
If the standard deviation of the market portfolio is 13%, what is the equilibrium expected return on a security that has a co-variance with a market portfolio of 186?
© BrainMass Inc. brainmass.com March 4, 2021, 5:42 pm ad1c9bdddfhttps://brainmass.com/business/finance/calculate-equilibrium-expected-return-security-6970
Solution Summary
The solution shows the formulas and the answer to the question.
$2.49