Question: You build a portfolio whose two components are the stock of Tesla and Sony which have betas equal to 0.9 and 0.4, respectively. Your weight
You build a portfolio whose two components are the stock of Tesla and Sony which have betas equal to 0.9 and 0.4, respectively. Your weight in Tesla is 0.45. The risk-premium of the market portfolio is 15%. What is the risk-premium of your portfolio if the CAPM model is a perfect description of reality?
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