What is the risk premium on a portfolio invested 40 in gm


Suppose the risk premium on the market portfolio is 4% with a standard deviation of 20%.

What is the risk premium on a portfolio invested 40% in GM and 60% in Ford, if they have betas of 1.4 and 1.0 respectively?

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Financial Management: What is the risk premium on a portfolio invested 40 in gm
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