Stock

A

has a beta of 0.87 and volatility of 0.81 . Stock

B

has a beta of 1.14 and volatility of 0.74 . The expected return on the market portfolio is 0.12 , and the current T-Bill rate is 0.04. According to the CAPM, what is the expected return of a portfolio consisting of

$17,000

in Stock A and

$17,000

in Stock B? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is

9.55%

, enter . 0955 .\ Type your answer...

Stock A has a beta of 0.87 and volatility of 0.81 . Stock B has a beta of 1.14 and volatility of 0.74 . The expected return on the market portfolio is 0.12 , and the current T-Bill rate is 0.04 . According to the CAPM, what is the expected return of a portfolio consisting of $17,000 in Stock A and $17,000 in Stock B? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 9.55%, enter .0955