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The expected retum and the variance on the market index are 6% and 10%, respectively, and the risk-free return is 3%. You consider holding a
The expected retum and the variance on the market index are 6% and 10%, respectively, and the risk-free return is 3%. You consider holding a portfolio A that has a variance of 20% and an expected return of 7%. What is the M2 measure for your portfolio? What change in return on the portfolio would bring the value of M2 to zero? Other things being equal, could a change in the portfolio beta achieve the same effect
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