10.39 Suppose you have invested $30,000 in the following four stocks. The risk-free rate is 4 percent...

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10.39 Suppose you have invested $30,000 in the following four stocks.

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The risk-free rate is 4 percent and the expected return on the market portfolio is 15 percent.
Based on the CAPM, what is the expected return on the above portfolio?

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Jul 25, 2024 10:03 AM

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10.39 Suppose you have invested $30,000 in the following four stocks. The risk-free rate is 4 percent...

Question:

Security Amount Invested Beta Stock A $ 5,000 0.75 Stock B 10,000 1.10 Stock C 8,000 1.36 Stock D 7,000 1.88

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Corporate Finance

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