PjMoj 1 E[fj] = r + ' -(E[TM] - r) 2 E[j] = r; + PjjM...
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PjMoj 1 E[fj] = r + ' -(E[TM] - r) 2 E[j] = r; + PjjM (E[TM] -rf) Cov(j,TM) 3 E[j] = r + -(E[TM] - r) E[j] = r + ;(E[m] ) Expected return Risk to ownership of Free Asset j Rate Expected return to the market portfolio less r', the "risk premium on the market" PjMoj 1 E[fj] = r + ' -(E[TM] - r) 2 E[j] = r; + PjjM (E[TM] -rf) Cov(j,TM) 3 E[j] = r + -(E[TM] - r) E[j] = r + ;(E[m] ) Expected return Risk to ownership of Free Asset j Rate Expected return to the market portfolio less r', the "risk premium on the market"
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