Question
You have a portfolio that is invested 25% in the risk-free asset, 25% in a market index fund, 25% in a stock with a beta
You have a portfolio that is invested 25% in the risk-free asset, 25% in a market index fund, 25% in a stock with a beta of 0.84, and 25% in a stock with a beta of 1.34. If the risk-free rate is 2% and the market risk premium is 12%, what is the expected return on your portfolio?
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Healthcare Finance Modern Financial Analysis For Accelerating Biomedical Innovation
Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
