CAPM

Hey,

I have a couple of question about CAPM.

Apologies if I have posted in the wrong section.


For the risk-free rate, what is the best way to just the maturity of the gilt (for a UK investor) that you are using.

Second, as we use the yield for the risk-free rate, this is the geometric mean.

For the return on the market portfolio, do we use the CAGR (geometric mean) or the arithmetic mean?


Thank you

 

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