You want to construct a portfolio with the following three assets: $ invested b1 b2 Asset X
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Question:
You want to construct a portfolio with the following three assets:
$ invested | b1 | b2 | |
Asset X | $1,000 | 0.1 | 1.8 |
Asset Y | $2,460 | 2.3 | 0.3 |
Asset Z | $6,320 | 0 | 0 |
What is hte expected return of this portfolio, if assets with no risk yield 3.0% and the risk premiums for factors 1 and 2 are 4.3% and 7.8%, respectively?
Answer in percentage without the symbol.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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