Question: you build a portfolio whose two components are the stock of ericsson astrazeneca which have the betas equal to 0.9 and 0.4 respectively. your weight
you build a portfolio whose two components are the stock of ericsson astrazeneca which have the betas equal to 0.9 and 0.4 respectively. your weight in ericsson 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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