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You own $15,500 of AAPL, $9,000 of TSLA, and $7,000 of DIS. These stocks have betas of 2, 1.1, and 0.3, respectively. Assume the market
You own $15,500 of AAPL, $9,000 of TSLA, and $7,000 of DIS. These stocks have betas of 2, 1.1, and 0.3, respectively. Assume the market return will be 7% and the risk-free rate is 3%. Compute the risk premium for:
- the market (as percent, e.g. 10.25 for 10.25%)
- AAPL (as percent, e.g. 10.25 for 10.25%)
- TSLA (as percent, e.g. 10.25 for 10.25%)
- DIS (as percent, e.g. 10.25 for 10.25%)
- the portfolio
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