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Expected return of a portfolio using beta. The beta of four stocksG, H, I, and Jare 0.41, 0.73, 1.16, and 1.64, respectively and the beta
Expected return of a portfolio using beta.
The beta of four stocksG, H, I, and Jare 0.41, 0.73, 1.16, and 1.64, respectively and the beta of portfolio 1 is 0.99, the beta of portfolio 2 is 0.81, and the beta of portfolio 3 is 1.14. 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 4.5% (risk-free rate) and a market premium of 10.5% slope of the line)?
What is the expected return of stock I,J
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