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9-6 Suppose Autodesk stock has a beta of 2.50, whereas Costco stock has a beta of 0.73. If the risk-free interest rate is 6.5% and

9-6

Suppose Autodesk stock has a beta of 2.50, whereas Costco stock has a beta of 0.73. If the risk-free interest rate is 6.5% and the expected return of the market portfolio is 13.5%, 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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