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CAPM Calulate market expected return

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › CAPM Calulate market expected return

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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    Posts
  • March 14, 2021 at 4:52 pm #614425
    Aca1
    Member
    • Topics: 9
    • Replies: 9
    • ☆

    Dear Sir, Please help with this question to find Market portfolio’s expected rate of return and risk free rate:

    A B

    Expected return 22% 24%
    Standard Deviation 40% 38%

    Beta 0.82 1.25

    Correlation Coefficient 0.75

    Standard deviation of the market return 15%

    March 15, 2021 at 8:54 am #614449
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    This can no longer be asked in Paper AFM.

    (It used to be examinable, but was removed from the syllabus a long, long time ago 🙂 )

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