Question
You currently have a portfolio which contains two securities with equal weights. One is a risk-free asset and the other is perfectly following the market.
You currently have a portfolio which contains two securities with equal weights. One is a risk-free asset and the other is perfectly following the market. The return for the risk-free asset is 5% and the portfolio’s expected return is 10%. You are going to create another portfolio with the beta of 1.2. What should be your expected return on the new portfolio?
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With a beta of 1 point 2 the new portfolios anticip...
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1305631540, 1305631544, 1305250907, 978-1305250901
