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Suppose you form a portfolio consisting of $ 2 6 , 0 0 0 invested in a mutual fund with beta of 1 . 8
Suppose you form a portfolio consisting of $ invested in a mutual fund with beta of $ invested in Treasury securities assume riskfree and $ invested in an index fund tracking the market. Expected market risk premium is Riskfree rate is What is the expected return of this portfolio according to the CAPM? Answer in percent, rounded to one decimal place.
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