Question
You are given the following information: (i) A stock with a beta of 0 has an expected return of 4%. (ii) A portfolio made up
You are given the following information:
(i) A stock with a beta of 0 has an expected return of 4%.
(ii) A portfolio made up of 30% invested at the risk free rate and 70% invested in the market portfolio has an expected return of 15%
What is the market risk premium?
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Financial Theory Perspectives From China
Authors: Xingyun Peng
1st Edition
1938134311, 1938134338, 9781938134319, 9781938134333
