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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
37. Assume that both X and Y are well-diversified portfolios and the risk-free rate is 8%.
|
Portfolio |
Expected Return |
Beta |
|
X |
16% |
1.00 |
|
Y |
12% |
0.25 |
In this situation you could conclude that portfolios X and Y:
a. Are in equilibrium.
b. Offer an arbitrage opportunity.
c. Are both underpriced.
d. Are both fairly priced.
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