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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › ch#10 CAPM,example 6
Please explain this point (0.3*1),I’m unable to understand why 0.3 is multiplied by 1.thanks in advance
Because 30% is invested in C which has the same risk as the market, and therefore has a beta of 1.
Are you watching the free lectures? Because I work through, and explain, all the examples in the lectures.
There is no point in using the lecture notes without watching the lectures – they are lecture notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers and study from that.