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answer part 3 please Problem 12 Intro You've assembled the following portfolio: Stock Expected return Beta Portfolio weight 1 0.139 1.7 0.2 2. 0.097 1.1

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Problem 12 Intro You've assembled the following portfolio: Stock Expected return Beta Portfolio weight 1 0.139 1.7 0.2 2. 0.097 1.1 0.5 3 0.083 0.9 0.3 Part 2 18 Attempt 1/10 for 10 p What is the expected return of your portfolio? .1012 Correct Expected portfolio return: Erp) = W, E(ru) + W2 E(ra) + W3 E(r3) = 0.2 0.139 +0.5 0.097 + 0.3 0.083 = 0.1012 Part 3 IB Attempt 1/10 for 10 pts. If the risk-free rate is 2% and the CAPM holds, what is the expected return for the market portfolio? B+ decimals Submit

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