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Example The risk free rate is 4%, and the required return on the market is 12% What is the required returm on an asset with

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Example The risk free rate is 4%, and the required return on the market is 12% What is the required returm on an asset with a beta of 1.58 What is the reward/risk ratio? consisting of 40% of the asset above and the rest in an asset with an average amount of systematic risk

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