- Disequilibrium Example E Sml 15 Rm 11 Suppose A Security With A Ss Of 1 25 Is Offering An Expected Return Of 15 13 1 (49.04 KiB) Viewed 30 times
Disequilibrium Example E() SML 15% Rm=11% Suppose a security with a ß of 1.25 is offering an expected return of 15% 13%
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Disequilibrium Example E() SML 15% Rm=11% Suppose a security with a ß of 1.25 is offering an expected return of 15% 13%
Disequilibrium Example E() SML 15% Rm=11% Suppose a security with a ß of 1.25 is offering an expected return of 15% 13% r=3% B According to the SML, the E(r) should be 13% 1.0 1.25 Is the security under or overpriced?