Suppose drug-maker Pfizer (PFE) has a beta of 0.7, whereas the beta of Google (GOOG) is 0.9.
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Suppose drug-maker Pfizer (PFE) has a beta of 0.7, whereas the beta of Google (GOOG) is 0.9. If the risk-free interest rate is 3% and the market risk premium is 6%, what is the expected return of equally weighted portfolio of Pfizer and Google, according to the CAPM?
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