Suppose that there are two independent economic factors, f1 and f2. the risk-free rate is 5%, and all stocks have independent firm-specific components with a standard deviation of 44%. portfolios a and b are both well-diversified with the following properties: portfolio beta on f1 beta on f2 expected returna 2.0 2.3 34 %b 2.9 –0.23 29 %what is the expected return-beta relationship in this economy? calculate the risk-free rate, rf, and the factor risk premiums, rp1 and rp2, to complete the equation below. (do not round intermediate calculations. round your answers to two decimal places.)e(rp) = rf + (? p1 × rp1) + (? p2 × rp2)rf = %rp1 = %rp2 = %

In the fall, jay thompson decided to live in a university dormitory. he signed a dorm contract under which he was obligated to pay the room rent for the full college year. one clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. the dorm cost was $5000 for the two semesters, which jay had already paid a month after he moved into the dorm, he decided he would prefer to live in an apartment. that week, after some searching for a replacement to fulfill his dorm contract, jay had two offers. one student offered to move in immediately and to pay jay $300 per month for the eight remaining months of the school year. a second student offered to move in the second semester and pay $2500 to jay. jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. his share of the apartment rent and utilities will be $404 per month. assume each semester is 4.5 months long. disregard the small differences in the timing of the disbursements or receipts. what is the cost of the cheapest alternative?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.