P11-50 (similar to)

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Suppose Autodesk stock has a beta of

2.17,

whereas Costco stock has a beta of

0.75.

If the risk-free interest rate is

3%

and the expected return of the market portfolio is

11.5%,

what is the expected return of a portfolio that consists of

70%

Autodesk stock and

30%

Costco stock, according to the CAPM?The expected return is

nothing%.

(Round to two decimal places.)