Question
You want to construct a portfolio with the following three assets: $ invested b1 b2 Asset X $1,390 0.3 0.1 Asset Y $4,080 1.2 1.0
You want to construct a portfolio with the following three assets:
| $ invested | b1 | b2 | |
| Asset X | $1,390 | 0.3 | 0.1 |
| Asset Y | $4,080 | 1.2 | 1.0 |
| Asset Z | $6,940 | 0 | 0 |
What is the expected return of this portfolio, if assets with no risk yield 4.3% and the risk premiums for factors 1 and 2 are 7.0% and 9.5%, respectively?
please explain each step completely :)
thank you!!!
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Financial Environment And Business Development Proceedings Of The 16th Eurasia Business And Economics Society Conference
Authors: Mehmet Huseyin Bilgin , Hakan Danis , Ender Demir , Ugur Can
1st Edition
3319399187,3319399195
