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Elise plans to invest in the stock market and intends to form a portfolio of the following two securities: Security Expected return Beta Fortes, Inc.
Elise plans to invest in the stock market and intends to form a portfolio of the following two securities: Security Expected return Beta Fortes, Inc. 18% 2.25 Risk-free 6% She believes that CAPM holds. a) Calculate the expected return on a portfolio equally invested in the two securities. b) Calculate the weight of a portfolio that has a beta of 1.5. c) Calculate the beta of a portfolio that has an expected return of 15%
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