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Suppose the market has a Sharpe ratio of 0.4 and a volatility of 20%. Suppose an asset has a volatility of 30% and a correlation
Suppose the market has a Sharpe ratio of 0.4 and a volatility of 20%. Suppose an asset has a volatility of 30% and a correlation of 0.5 with the market. What is the risk premium of the asset?
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