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Exercise #8: Provide numerical answers: a. The beta of the risk-free asset is [16] b. The beta of the market portfolio is [17]. c. The

Exercise #8: Provide numerical answers: a. The beta of the risk-free asset is [16] b. The beta of the market portfolio is [17]. c. The beta of a portfolio invested 30% in risk-free and 70% in market is [18]. d. If rf=4% and mkt risk premium is 6%, the expected return on the portfolio in c. is .[19]%

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