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a) Given a risk-free rate of 3%, an expected return of the market of 9%. What is the risk premium for an asset with b
a) Given a risk-free rate of 3%, an expected return of the market of 9%. What is the risk premium for an asset with b = 1?
b) What is the required return of an asset with b = 1.6?
c) What is the reward to risk ratio?
d) What is the expected return on a portfolio of 30% of the asset in b) and the remainder in an asset with an average amount of systematic risk?
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