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w R St.Dev. Beta Alpha HELX 1.35 LMT 30% 30% 40% 4.36% 1.48% 1.87% 10.83% 5.04% 6.21% 0.23 2.54% 0.66% 0.08% COST 1.32 Optimal 3-Stock
w R St.Dev. Beta Alpha HELX 1.35 LMT 30% 30% 40% 4.36% 1.48% 1.87% 10.83% 5.04% 6.21% 0.23 2.54% 0.66% 0.08% COST 1.32 Optimal 3-Stock Portfolio 4.51% 1 S&P 500 Risk Free Security 1.50% 0.6% 3.10% 0.0% 0 Write out CAPM equation based on historical data for the above portfolio. Ri = 0.6 + 3.1 ( oi) Ri = 0.6 + Betai (1.50 - 0.6) Ri = 0.6 - Betai (3.1 0.6) Ri = 0.6 + Betai (1.00)
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