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Suppose Autodesk stock has a beta of 2.50, whereas Costco stock has a beta of 0.68. If therisk-free interest rate is 5.5% and the expected

Suppose Autodesk stock has a beta of 2.50,

whereas Costco stock has a beta of 0.68.

If therisk-free interest rate is 5.5%

and the expected return of the market portfolio is 13.5%,

what is the expected return of a portfolio that consists of 60%

Auto desk stock and 40%

Costcostock, according to theCAPM?

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