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Your client decides to invest $2 million in Flama stock and $6 million in Blanca stock. The risk-free rate is 4% and the market risk
- Your client decides to invest $2 million in Flama stock and $6 million in Blanca stock. The risk-free rate is 4% and the market risk premium is 5%. The beta of the Flama Stock is 1.2; and the beta of the Blanca stock is 0.8.
- What are the weights for this portfolio?
- What is the portfolio beta?
- What is the required return of the portfolio?
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
