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The market portfolio has an expected return of 12.6% and a variance of 0.0458. Portfolio X has a correlation coefficient with the market of 0.25
The market portfolio has an expected return of 12.6% and a variance of 0.0458. Portfolio X has a correlation coefficient with the market of 0.25 and a variance of 0.3468. According to the capital asset pricing model (CAPM), what is the expected return on portfolio X if the risk free rate is 2.2%?
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