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Suppose you form a portfolio consisting of $37,000 invested in a mutual fund with beta of 1.3, $23,000 invested in Treasury securities (assume risk-free), and

Suppose you form a portfolio consisting of $37,000 invested in a mutual fund with beta of 1.3, $23,000 invested in Treasury securities (assume risk-free), and $14,000 invested in an index fund with the same beta as the entire market. Expected market risk premium is 5.9%. Risk-free rate is 0.8%. What is the expected return of this portfolio according to the CAPM?

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