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Assume these securities are correctly priced. Based on the CAPM, what is the return on the market?

Assuming that these securities are correctly priced, what is the expected return on the market according to the Capital Asset Pricing Model (CAPM)?
2 answers 164
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Anonymous

Oct 18, 2024

It is based on the bond’s marketability and trading frequency; the less frequently the security is traded, the higher the premium

The bond's marketability and trading frequency significantly influence its premium. Generally, the less frequently a security is traded, the higher the premium that is added, which ultimately results...
3 answers 171