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You create a portfolio consisting of $20,000 invested in a mutual fund with beta of 1.9, $17,000 invested in Treasury securities (assume risk-free), and $10,000
You create a portfolio consisting of $20,000 invested in a mutual fund with beta of 1.9, $17,000 invested in Treasury securities (assume risk-free), and $10,000 invested in an index fund tracking the market. According to surveys, the expected market risk premium is 5.9%. Risk-free rate is 1.1%. What is the expected return of this portfolio according to the CAPM
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