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I'm pretty sure my answer is correct, I just want someone to double check it before I submit it. thank you! Suppose Autodesk stock has
I'm pretty sure my answer is correct, I just want someone to double check it before I submit it. thank you!
Suppose Autodesk stock has a beta of 2.30, whereas Costco stock has a beta of 0.75. If the risk-free interest rate is 6.5% and the expected return of the market portfolio is 12.5%, what is the expected return of a portfolio that consists of 60% Autodesk stock and 40% Costco stock, according to the CAPM? The expected return is 14.08%. (Round to two decimal places.)Step by Step Solution
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