I need help finding the answer to a question on Risk and return
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I need your help with this question its on Risk and Return and it is a True or False and I need your help explaining or qualifying the answer.
a. The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio.
If there are abreviations or formulas used on the answer, can you help me with the meaning.
Thank you your help is GREATLY aprreciated.
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The expected return on an investment is given by Capital Asset Pricing Model
r = rf + beta*(rm-rf)
Where r= expected return on ...
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