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Finding the expected return on the portfolio

Question:

Suppose you invested 35,000 in the following four stocks

invested    Beta
A    14,000    0.6
B    15,000    1.1
C    16,000    1.3
D    17,000    1.8

Risk free rate is 5 percent and expected return on the market portfolio is 18 percent.

Based on CAPM, what is the expected return on the above portfolio?

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Finance Basics: Finding the expected return on the portfolio

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Finance Basics: Finding the expected return on the portfolio

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