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If portfolio a has a beta of 08 on the first factor and 11

Consider a well-diversified portfolio, A, in an economy with two significant systematic risk factors. The risk-free rate is 0.5%, the risk premium on the first factor is 3% and the risk premium on the second factor is 4%. If portfolio A has a beta of 0.8 on the first factor and 1.1 on the second factor, what is its equilibrium expected return?

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Finance Basics: If portfolio a has a beta of 08 on the first factor and 11

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Finance Basics: If portfolio a has a beta of 08 on the first factor and 11

Reference No:- TGS02794963

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