Hello, everyone!
I have a few questions. Maybe someone can help me!
Is covariansce of risk free asset with market portfio is zero?
Is covariansce of risk free asset with any risky asset is zero?
When i invest money into project and use CAPM for estimation of expected return I require a higher return if he risk is higher. But in which
circumstances I will prefer a lower expected return? Wheni have to pay to some one money back? Please provide some examples.
Thanks in advance!
I have a few questions. Maybe someone can help me!
Is covariansce of risk free asset with market portfio is zero?
Is covariansce of risk free asset with any risky asset is zero?
When i invest money into project and use CAPM for estimation of expected return I require a higher return if he risk is higher. But in which
circumstances I will prefer a lower expected return? Wheni have to pay to some one money back? Please provide some examples.
Thanks in advance!