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3.       Given the data in the prior question, what is the standard deviation of return from the point of view of a U.S. investor and of a U.K. investor?4.       For the following...

5.       You have just lectured two tax-free institutions on the necessity of including taxes in the general equilibrium relationship. One believed you and one did not. Demonstrate that if the model...

5.       What is the standard deviation of return from the point of view of a U.S. and a Japanese investor?6.       What is the correlation of return between markets from the point of view of each...

1.       Assume that the following assets are correctly priced according to the security market line. Derive the security market line. What is the expected return on an asset with a beta of...

2.       Assume the security market line given below. Assume that analysts have estimated the beta on two stocks as follows: [3x = 0.5 and [3y = 2. What must the expected return on the two...

3.       Assume that over some period, a CAPM was estimated. The results are shown below. Assume that over the same period, two mutual funds had the following results:Fund A     Actual return =...