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Please not only fill in the blanks but answer the entire question! Thank you! Suppose Autodesk stock has a beta of 2.20, whereas Costco stock
Please not only fill in the blanks but answer the entire question! Thank you!
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.69. If the risk-free interest rate is 4.5% and the expected return of the market portfolio is 12.0%, what is the expected return of a portfolio that consists of 65% Autodesk stock and 35% Costco stock, according to the CAPM? The expected return is %. (Round to two decimal places.)Step by Step Solution
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