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Rewrite: A portfolio constructed to have a 0 systematic risk i.e.A zero Beta portfolio would have the same expected return as the risk-free rate.A portfolio

Rewrite: A portfolio constructed to have a 0 systematic risk i.e.A zero Beta portfolio would have the same expected return as the risk-free rate.A portfolio with an expected return equal to the risk-free rate would mean no compensation for takin on a risk. Investors typically expect higher returns for takin on risk

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