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Ri= Rf + B1F1 + B2F2 - B3F3 assume there is no frim specific riisk. the information for each stock is presented here B1 B2
Ri= Rf + B1F1 + B2F2 - B3F3
assume there is no frim specific riisk. the information for each stock is presented here
B1 B2 B3
stock a 1.55 .80 .05
stock b .81 1.25 -.20
stock c .73 -.14 1.24
the ris premiums for the factors are 4.9 %, 3.8% and 5.3% respectviely. if you create a portfolio with 20% invested in stock A, 20% invested in stock B and the reaminder in STock C, what is the expression for the return on your portfolio. if the risk free rate is 3.2%, what is the ex[ected return on your portfolio
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