Suppose Autodesk stock has a beta of 2.40, whereas Costco stock has a beta of 0.73. If
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Suppose Autodesk stock has a beta of 2.40, whereas Costco stock has a beta of 0.73. If the risk-free interest rate is 6% and the expected return of the market portfolio is 11.5%, what is the expected return of a portfolio that consists of 65% Autodesk stock and 35% Costco stock, according to the CAPM?
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Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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