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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 $1200 in GM.The
(SML) You plan to invest in three stocks with the following amount of money: $3000 in Google and $1500 in Microsoft and $1200 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 | |
Microsoft | 0.3 |
GM | 1.1 |
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