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What is the beta of portfolio

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Reference no: EM132601612

Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. The σ of your portfolio was 0.25 and was 0.21. The risk premium of index return is 8% and the risk-free interest rate is 2%.

(1) What is the beta of this portfolio?

(2) What is the expected return of your portfolio if it is fairly priced?

Reference no: EM132601612

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