\begin{tabular}{l} \hline Question 10 \\ Not yet answered \\ Marked out of 6.00 \\ p Flag question \\ \hline \end{tabular} Question 10 Not yet answered Marked out of 6.00 Flag question Suppose the stock of firm A has a beta of 0.35 and the stock of firm B has a beta of 1.69. The risk-free interest rate is 2.60% and the market risk premium is 6.80%. According to the CAPM, compute the expected return on a portfolio with the following allocation: - 21% invested in firm A - 44% invested in firm B - 37% invested in the 'market' (a diversified portfolio with systematic risk equivalent to the market) - the remainder invested in a risk-free bond. Give your answer with four decimals. For example, 3.9567%