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The market portfolio has an expected return of 10% and consists of 30% in stock and 70% in real estate, and the risk-free interest rate
The market portfolio has an expected return of 10% and consists of 30% in stock and 70% in real estate, and the risk-free interest rate is 5%. Based on the single-factor CAPM model and the following information on stock and property returns.
The standard deviation of stock performance:0.2
The standard deviation of real estate performance:0.1
The correlation between stock return and real estate return: 0.3
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