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Compute the risk premium for portfolio

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Reference no: EM133014244

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Q1. Adam wants to determine the required return on a stock portfolio with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return 12 percent. Compute the risk premium for portfolio and the required rate of return.

Q2. Suzy wants to buy a house but does not want to get a loanThe average price of her dream house is $500,000 and its price is growing at percent per year. How much should Suzy invest in a project at the end of each year for the next 5 years in order to accumulate enough money to buy her dream house with cash at the end of the fifth year? Assume the project pays 12 percent rate of return.

Reference no: EM133014244

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