@Alex_1 and @Heidi
Thank you for the feedback. But I just want to point out the following:
[E(Rm) - Rf] is called market risk premium
[E(Rm)-Rf]/std. dev of market is called market price of risk.
The two concepts are not the same.
Ref: Standard Capital Asset pricing model, Chapter 13 Modern...
@David Harper CFA FRM CIPM
I agree with your argument, but among all choices it seemed like the best available answer.
For Q3 - The question seeks a true statement.
Answer A is false, because SML states that expected return on an asset is the riskless interest rates plus market risk premium...
Quantbooster, I agree.
I cant seem to find the 2013 current issue notes as well.
The BT FRM calendar says the notes should have been out by Mid March.
BT team, please help!
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