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What are the risk premiums for each factor in the model

Problem: Suppose stock returns can be explained by a two-factor model information for two diversified portfolios:

B1 B2 Expected Return
Portfolio A .85 1.15 16%
Portfolio B 1.45 -.25 12%

If the risk free rate is 4%, what are the risk premiums for each factor in the model?

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Finance Basics: What are the risk premiums for each factor in the model

Reference No:- TGS02074420

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