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4. (Portfolio beta and expected return) Using data from problem 2 and 3, what is the expected return of the portfolio in problem 3? The

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4. (Portfolio beta and expected return) Using data from problem 2 and 3, what is the expected return of the portfolio in problem 3? The beta of the portfolio? 2. (CAPM) The expected market return is 8% and the risk-free interest rate is 4%, compute the expected returns for each of the following stocks using the CAPM equation: E(r)=rf+B(E(rm)-rf) Stock Beta Expected Return Google 1.3 Microsoft 0.8 GM 1.5 3. (Portfolio weights) You plan to invest $8000 in stocks: $4000 in Google and $1500 in Microsoft and $2500 in GM. What are the portfolio weights for this portfolio? 4. (Portfolio beta and expected return) Using data from problem 2 and 3, what is the expected return of the portfolio in problem 3? The beta of the portfolio

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