Consider a financial market composed of only two risky assets (which are imperfectly correlated). Risky asset 1
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a financial market composed of only two risky assets (which are imperfectly correlated). Risky asset 1 has beta equal to Beta 1= 1.7 and expected return equal to E (r1)= 10%. Risky asset 2 has beta equal to Beta 2= 0.7 and expected return equal to E(r2)= 7%. Find expected return on the market portfolio.
Posted Date: