"There are two independent factors in the economy, F1 and F2, and the betas for Portfolio...

"There are two independent factors in the economy, F1 and F2, and the betas for Portfolio X on these factors are 1 and 2 respectively. For Portfolio Y, the betas on the two factors are 2 and 1 respectively. The expected returns of X and Y are 6.5% and 7% respectively. If the risk-free rate is 3%, what is the expected return of Portfolio Z that has beta of 1 on F1 and beta of 1 on F2?"

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jeff jeffy answered 1 year ago

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