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You observe E[rIBM] = 8%, E[rAAPL] = 12%, Beta AAPL = Beta IBM + 2/3 , rf = 4%. What is E[rM] (the expected return

You observe E[rIBM] = 8%, E[rAAPL] = 12%, Beta AAPL = Beta IBM + 2/3 , rf = 4%. What is E[rM] (the expected return on market portfolio) assuming the CAPM is true?

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