If you know that the risk free rate is 1%, the return on the market portfolio...

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If you know that the risk free rate is 1%, the return on the market portfolio is 15% and the 8 = 0.8 What is the expected return on asset i? (10 points) If the weights on your portfolio composed of three assets are 10%, 80% and 10% and the expectell return on the same assets are 1%, 2%, and 5%, respectively. What is the expected return on the portfolio? (10 points) If you have two assets, one with a 3= 1.2 and the other with a B = 0.7, what is the premium return the first one pays over the second one? You know I'm= 15% and rf = 2% If you know that the risk free rate is 1%, the return on the market portfolio is 15% and the 8 = 0.8 What is the expected return on asset i? (10 points) If the weights on your portfolio composed of three assets are 10%, 80% and 10% and the expectell return on the same assets are 1%, 2%, and 5%, respectively. What is the expected return on the portfolio? (10 points) If you have two assets, one with a 3= 1.2 and the other with a B = 0.7, what is the premium return the first one pays over the second one? You know I'm= 15% and rf = 2%

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1 The expected return on an asset can be calculated using the Capital Asset Pricing Model CAPM formu... View the full answer