Suppose a risk-free security pays a 8 return and a market


Suppose a risk-free security pays a 8% return, and a market portfolio has an expected return of 9%.

What is the expected return on a portfolio that has $6,000.00 invested in the risk-free security and $4,000.00 invested in the market portfolio? Round your answer to one decimal place.

What is the CAPM beta of the portfolio? Round your answer to two decimal places.

Does the CAPM beta correspond to the portfolio weight invested in the market portfolio?

Yes or No?

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Financial Management: Suppose a risk-free security pays a 8 return and a market
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