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Expected return is 10.27. Why? Obi-wan forms an aggressive growth porttolio by investing 22% of his savings in Ford stock, 21% in Nissan stock, 23%

Expected return is 10.27. Why?
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Obi-wan forms an aggressive growth porttolio by investing 22% of his savings in Ford stock, 21% in Nissan stock, 23% in Subaru stock, 12% in an index fund, and the last 22% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market porttolio and has a beta equal to 1, whereas the bond fund is a good proxy to the riskiess asset. The beta of Ford stock is 1.18, the beta of Nissan is 1.37, and the beta of Subaru is 1.83. If the expected return of the market index is 10% and the risk-free asset yields 7%, what are the beta and the expected return of Obi-wan's portfolio? Give your answer rounded to two decimal places. This question has 2 parts (t.e., you will be clicking "Verify" twice). What is the beta of the portiolio? P=

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