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Mathematics, 08.07.2019 19:10 pakabigail4796

Assume an economy consists of three types of people. 40% are trend followers, 50% are passive investors that hold the market portfolio, and 10% are informed traders. the portfolio for all informed traders has an alpha of 0.8% and an expected return of 15%. the expected market return is 10% and the risk-free rate is 3%. calculate the beta for the portfolio of the trend followers.

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Assume an economy consists of three types of people. 40% are trend followers, 50% are passive invest...
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