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Suppose Autodesk stock has a beta of 2.50, whereas Costco stock has a beta of 0.74. If the risk-free interest rate is 6% and the
Suppose Autodesk stock has a beta of 2.50, whereas Costco stock has a beta of 0.74. If the risk-free interest rate is 6% and the expected return of the market portfolio is 13.0%, what is the expected return of a portfolio that consists of 70% Autodesk stock and 30% Costco stock, according to the CAPM? The expected return is \%. (Round to two decimal places.)
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