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Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. The of your portfolio was
- Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. The of your portfolio was 0.25 andwas 0.21. The risk premium of index return is 8% and the risk-free interest rate is 2%
What is the expected return of your portfolio if it is fairly priced?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
