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You have a portfolio with a fifth of your money invested in Apple Computers, and the remaining part of your money is invested in Yahoo
You have a portfolio with a fifth of your money invested in Apple Computers, and the remaining part of your money is invested in Yahoo stock. The expected return on Apple is 20%. the expected return on your portfolio is 22.5%, the expected return on the market portfolio is 9%, and the return on T-bonds is 2%.
What is the beta and expected return for Yahoo assuming CAPM holds?
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