Question
The risk free asset (T-Bills) has a beta of 0, and the market as a whole has a beta of 1. If you constructed a
The risk free asset (T-Bills) has a beta of 0, and the market as a whole has a beta of 1. If you constructed a portfolio of T-bill s and the S&P 500, how would you weight the two assets to achieve a return of 8%? Market return is 10% and T-Bill return is 4%
How would you weight the portfolio to have a beta of 0.4?
What is the risk premium of each portfolio created above?
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Financial Trading And Investing
Authors: John Teall
3rd Edition
0323909558, 978-0323909556
