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portfolio risk and return suppose the s&p 500, with a beta of 1.0, has an expected return of 10% and t bills provided a risk
portfolio risk and return suppose the s&p 500, with a beta of 1.0, has an expected return of 10% and t bills provided a risk free return of 4%?
A) how would u construct a portfolio form these 2 assets with a expected return of 8%? specifically, what will be the weights in the s&p 500 versus t bill
B) how would u construct a portfolio from these 2 asset with beta of .4?
C) find risk premiums of the portfolio in a and b and show that they r proportional to their betas?
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