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(SML) You plan to invest in three stocks with the following amount of money: $3000 in Google and $1500 in Microsoft and $1700 in GM.
(SML) You plan to invest in three stocks with the following amount of money: $3000 in Google and $1500 in Microsoft and $1700 in GM. The following table shows the beta of each stock. If the expected market return is 10% and the risk-free interest rate is 4%, according to the SML equation (from CAPM), the expected return of your portfolio is % Stock Beta 1.6 Google Microsoft 0.4 GM 2
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