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Find the risk-free rate given that the expected rate of return on asset j is 14 percent the expected return on the market portfolio is 12 percent and the beta b for asset j is 1.5?
CAPM equation E(Rj) = rf + b[E(Rm) - rf] 0.14 = rf + 1.5(0.12-rf) 0.14 = rf + 0.18 - 1.5rf -0.04 = rf - 1.5rf -0.04 = (1-1.5)rf -0.04 = -0.5rf rf = 0.08 rf = 8%
When did RF Online happen?
RF Online happened in 2005.
When was RF Online created?
RF Online was created in 2005.
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