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Expected return of a portfolio using beta. The beta of four stocksG, H, I, and are 0.48, 0.86, 1.02, and 1.55, respectively and the beta
Expected return of a portfolio using beta. The beta of four stocksG, H, I, and are 0.48, 0.86, 1.02, and 1.55, respectively and the beta of portfolio 1 is 0.98, the beta of portfolio 2 is 0.85, and the beta of portfolio 3 is 1.09. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.0% (risk-free rate) and a market premium of 9.0% (slope of the line)? What is the expected return of stock G? 1% (Round to two decimal places.) What is the expected return of stock H? 1% (Round to two decimal places.) What is the expected return of stock I? 1% (Round to two decimal places.) What is the expected return of stock J? % (Round to two decimal places.) What is the expected return of portfolio 1? % (Round to two decimal places.) What is the expected return of portfolio 2? % (Round to two decimal places.) What is the expected return of portfolio 3? % (Round to two decimal places.)
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