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You observe the following information in a market where the CAPM holds: beta | Expected return | Annual standard deviation Stock A 1.5 | 15.0%

You observe the following information in a market where the CAPM holds:

beta | Expected return | Annual standard deviation

Stock A 1.5 | 15.0% | 0.25

Stock B 1.2 | 13.2% | 0.30

The correlation coefficient between stock A and the market is 60%.

Compute the expected return on the market portfolio.

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