[khumo]

Hey John im busy studying this question and im still struggling to understand why in the CAPM do they have =4+(1.6×5)=12% instead of =4+1.6(5-4)=5.6%

[khumo]

Got the answer thank you.

[khumo]

This is the question i was also struggling with, then i thought maybe you would take the one closest to the negative and also the one closest to a positive. I think the 5% way makes much more sense to me. Thank you.

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