Starcents has an expected return of 25 percent, Jpod has an expected return of 20 percent, and

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Starcents has an expected return of 25 percent, Jpod has an expected return of 20 percent, and the risk-free rate is 5 percent. You invest half your funds in Starcents and the other half in Jpod. What is the risk premium for your portfolio?

a. 20 percent

b. 17.5 percent

c. 15 percent

d. 12.5 percent

Related Book For answer-question

Investments Analysis and Management

ISBN: 978-1118363294

12th edition

Authors: Charles P. Jones

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Posted Date: Jun 20, 2022 07:44 AM

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Starcents has an expected return of 25 percent, Jpod has an expected return of 20 percent, and

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Step 1 of 5 A Risk premium is the excess of return over risk free rate of return that an investor e... View the full answer

Investments Analysis and Management

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