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If the annual risk - free rate, Rrf , will be 4 percent in 2 0 2 4 and the expected return on the market

If the annual risk-free rate, Rrf, will be 4 percent in 2024 and the expected return on the
market index, E(Rm), will be 10 percent, what is your portfolio's required rate of return
according to CAPM? The portfolio consists of 2 stocks, A and B, with A having a beta of
1.2 and weight of .5 AND B having a BETA of .9 and a weight of .1. Use this information
to find the portfolio beta to solve the problem. ANSWER: 10.3%

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