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Unformatted text preview: r i = ∆ r M ⇒ risk i = risk M ⇒ r i = r M • ß M = 1 n • portfolio ß = ß p = ∑ w i ß i i=1 • the portfolio ß is the weighted average of the individual ß’s, using percentage of portfolio value as weights Shift in the SML Caused by an Increase in Inflation (k = r) Shift in the SML Caused by Increased Risk Aversion...
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This note was uploaded on 07/14/2010 for the course UGBA 103 taught by Professor Berk during the Summer '07 term at Berkeley.
- Summer '07