Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required return (RB) on stock B. The risk-free rate (Rf) is one-fourth of the...


Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be
half
of the required return (RB) on stock B. The risk-free rate (Rf) is
one-fourth
of the required return on A. Return on market portfolio is denoted by RM. Find the
ratioof
beta

of A
(bA)
to
beta of B
(bB).



Jun 02, 2022
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