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