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Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.71. If the risk-free interest rate is 5.5 % and
Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.71. If the risk-free interest rate is 5.5 % and the expected return of the market portfolio is 12.5 %, what is the expected return of a portfolio that consists of 55 % Autodesk stock and 45 % Costco stock, according to the CAPM?
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