CAPM model

Liza

New member
Joined
Sep 2, 2015
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6
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!:p
 
comment

Whatever I did before, i does no matter. If you do not know the answer just do not replay!!!!!!!!!

I want to find out the answer, I struggle with it and need help.
 
Hello, everyone!
C:\Users\72A9~1\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif


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!
C:\Users\72A9~1\AppData\Local\Temp\msohtmlclip1\01\clip_image002.gif
Hello, everyone!
C:\Users\72A9~1\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif


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!:)


BTW IF YOU DO NOT KNOW THE ANSWER, PLEASE DO NOT COMMENT ON THE QUESTION. I MAY ASK STUPID QUESTIONS , BUT THIS IS HOWEVER A PLACE ONE CAN LEARN SOMETHING. PLEASE RESPECT.
 
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