Portfolio Management
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You observe two portfolios HG and VL with betas of 1.20 and 0.50 and expected return of 9% and 5.5% respectively.
a. Calculate the risk free rate and the market risk premium. Write the SML function
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The solution describes the steps to calculate risk free rate, market risk premium and SML function in the given case.
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a. Calculate the risk free rate and the market risk premium. Write the SML function
In case of HG,
Beta=b=1.20
Risk free rate=rf=?
Expected return=r=9%
Market risk ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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