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Assume CAPM holds and use the following information: Portfolio A has E(r) of 18% and of 2.5 Portfolio B has E(r) of 12% and of

Assume CAPM holds and use the following information:

  • Portfolio A has E(r) of 18% and of 2.5
  • Portfolio B has E(r) of 12% and of 1.2

Find the expected return on a portfolio with a of 1.5

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