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Portfolio Belleville has two stocks: Asset $ Invested Exp. Return ER i i Fran $35,000 14.0% 1.3 Fred $65,000 11.0% 0.9 Market: Risk free: R
Portfolio Belleville has two stocks:
Asset | $ Invested | Exp. Return ERi | i |
Fran | $35,000 | 14.0% | 1.3 |
Fred | $65,000 | 11.0% | 0.9 |
Market: |
| Risk free: Rf = 4.0% | Market Return RM = 11.0% |
RRi = Rf + i x (RM Rf)
ERp = WA x ERA + WB x ERB +.
RRp = WA x RRA + WB x RRB +.
p = WA x A + WB x B +.
Question: What is the Expected Return ERP of Belleville portfolio?
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