Question
Assume that both portfolios A and B are well diversified, that E(rA) = 0.11, and E(rB) =0.08. If the economy has only one factor, and
Assume that both portfolios A and B are well diversified, that E(rA) = 0.11, and E(rB) =0.08. If the economy has only one factor, and A = 1.52, whereas B = 0.78, what must be the factor risk premium?
Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
