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Suppose the risk premium on the market portfolio is estimated at 8% with a standarddeviation of 22% You decide to put 25% of your money
Suppose the risk premium on the market portfolio is estimated at 8% with a standarddeviation of 22% You decide to put 25% of your money in Toyota and 75% of your money in Ford. Suppose the beta of Toyota = 1.10; Suppose the beta of Ford = 1.25
What is the risk premium of your portfolio?
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