Disequilibrium Example E() SML 15% Rm=11% Suppose a security with a ß of 1.25 is offering an expected return of 15% 13%
Posted: Mon Apr 25, 2022 8:40 am
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?