Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 2 of 11
Consider a well-diversified portfolio, A, in a two-factor economy. The risk-free rate is 6%, the risk premium on the first factor portfolio is 4%, and the risk premium on the second factor portfolio is 3%. If portfolio A has a beta of 1.2 on the first factor and .8 on the second factor, what is its expected return?
B. 10.3%
C. 13.2%
A. 8.0%
B. 10.3%
C. 13.2%
User Contributed Comments 1
| User | Comment |
|---|---|
| rt2007 | 6 + 1.2*4 + 0.8*3 = 13.2 |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe and compare macroeconomic factor models, fundamental factor models, and statistical factor models;
CFA® 2026 Level II Curriculum, Volume 5, Module 40.