Whatistheriskpremiumofazerobetastock?Doesthatmeanyoucanlowerthevolatilityofaportfoliowithoutchangingtheexpectedreturnbysubstitutingoutanyzero-betastockinaportfolio&replacingitwiththeriskfreeasset? - Please answer me what will happen whenzero-betastockinaportfolio is replaced withtheriskfreeasset. Please give full explanations with
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Question:
- Whatistheriskpremiumofazerobetastock?Doesthatmeanyoucanlowerthevolatilityofaportfoliowithoutchangingtheexpectedreturnbysubstitutingoutanyzero-betastockinaportfolio&replacingitwiththeriskfreeasset?
- Please answer me what will happen whenzero-betastockinaportfolio is replaced withtheriskfreeasset. Please give full explanations with example
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