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There are two independent economic factors, GDP and Inflation. The risk-free rate is 6%, and all stocks have independent
Posted: Sun Apr 17, 2022 6:18 pm
by answerhappygod
- There Are Two Independent Economic Factors Gdp And Inflation The Risk Free Rate Is 6 And All Stocks Have Independent 1 (13.26 KiB) Viewed 31 times
There are two independent economic factors, GDP and Inflation. The risk-free rate is 6%, and all stocks have independent firm-specific components with a standard deviation of 45%. The following are well-diversified portfolios: (Use one decimal place in percentage) Portfolio b on GDP bon Inflation Expected Return A 1.5 2.0 31% B 2.2 -0.2 27% What is the sum of the risk premium on GDP risk and on Inflation risk? Use two decimal places in percentage.