You currently have a portfolio which contains two securities with equal weights. One is a risk-free asset
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You currently have a portfolio which contains two securities with equal weights. One is a risk-free asset and the other is perfectly following the market. The return for the risk-free asset is 5% and the portfolio’s expected return is 10%. You are going to create another portfolio with the beta of 1.2. What should be your expected return on the new portfolio?
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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