Question: How to do this question? (a) The risk-free rate is 4%, and the required return on the market is 12%. What is the required return

 How to do this question? (a) The risk-free rate is 4%,

How to do this question?

(a) The risk-free rate is 4%, and the required return on the market is 12%. What is the required return on an asset with a beta of 1.5 ? (b) What is the reward/risk ratio? (c) What is the required return on a portfolio consisting of 40% of the asset above and the rest in an asset with an average amount of systematic risk

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