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Suppose Southwest Airlines has a beta of 0.9 and Walmart has a beat of -.4. The weight of Southwest in the portfolio is 53%, the
Suppose Southwest Airlines has a beta of 0.9 and Walmart has a beat of -.4. The weight of Southwest in the portfolio is 53%, the risk-free interest rate is 1.1% and the market return is 10%. a.What is the beta of the portfolio. Show the formula and all calculations. b. What is the expected return of a portfolio of Southwest and Walmart according to the CAPM? Show the formula and all calculations
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