The free risk is 5% and you expect S&P500 return to be 9%. Stocks X,Y and Z has a systematic risk value 1.5, 0.5 and 2.0 respectively. You also have the following information about three stocks. Stock X has 0.5 weightage, Y has 0.25 weightage and Z has 0.25 weightage.

The free risk is 5% and you expect S&P500 returnto be 9%. StocksX, Y and Z has a systematicrick value 1.5, 0.5 and 2.0 respectively. You also have the following information about three stocks. Stock Khas 0.5 weightage, Yhas 0.25 weightage and Z has 0.25 weightage. Dates Rates of return Stock X Stock Y Stock Z 15 November 2020 21 20 19 2"d November 2020 22 19 19 3" November 2020 23 18 17 Question: Using similar weights and the historical rates of return, what is the return of the portfolio? Please provide the calculation. [5marks]