senlinlang

remember risk free rate and MRP are constant for all assets. i think the term 'determined' is meant to say has unique impact on the asset weighting. so beta var(e) and alpha are the factors that are specific to each asset

zestzorb Wrote:
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> MFIN--- Wrote:
> --------------------------------------------------
> -----
> > Beta is used to determine alpha
>
> Thanks. I forgot we used ex-ante alphas. But damn
> this question, I could also say this statement was
> wrong because it didn't mention the risk-free rate
> and market premium.