Question
Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 5%. Portfolios A and B are both well diversified. What are
Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 5%. Portfolios A and B are both well diversified. What are M1 and M2s expected risk premiums? Please Show Work!!!! Need Hekp freaking out!
| Portfolio | Beta M1 | Beta M2 | Expected Return |
| A | 1.5 | 1.9 | 34% |
| B | 1.8 | -0.6 | 12% |
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Finance Operations
Authors: Charles Finley
1st Edition
1491292423, 978-1491292426
