You are told to use the CAPM and predict the return of a zero beta portfolio tomorrow. You are then told that the market will go up by 14 tomorrow and know this information is correct the market WILL, In fact, go up by 1 tomorrow). How does this effect your prediction? The portfolio will have a 1% higher return tomorrow as the market will go up by 14 tomorrow. The portfolio will have a 1% lower return tomorrow as the market will yo up by 14 tomorrow, and the portfolio lis zero beta, It depends on other united factors It doesn't effect my prediction