Exercise You are very risk averse and would like to have a portfolio with 4 0 of the risk of the market portfolio a How would you accomplish this according to CAPM b If the premium on the market is 5 , what is the expected return on your portfolio

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Exercise You are very risk - averse and would like to have a portfolio with 4 0 % of the risk of the market portfolio.

Exercise

You are very risk

-

averse and would like to have a portfolio with

40 %

of the risk of the market portfolio.

.

How would you accomplish this according to CAPM?

.

If the premium on the market is

5 %,

what is the expected return on your portfolio?

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