Question
Please help me these questions with clear calculation and explaination: Suppose you held a well-diversified portfolio with a very large number of securities, and that
Please help me these questions with clear calculation and explaination:
Suppose you held a well-diversified portfolio with a very large number of securities, and
that the single index model holds. The of your portfolio was 0.25 and () was 0.21. The
risk premium of index return is 8% and the risk-free interest rate is 2%.
(1) What is the beta of this portfolio?
(2) What is the expected return of your portfolio if it is fairly priced?
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
