Suppose the risk free rate is 4 2 percent and the market portfolio has an expected return of 10 9 percent The market portfolio has a variance of 0382 Portfolio Z has a correlation coefficient with the market of 28 and a variance of 3285 According to the capital asset pricing model, what is the expe...

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Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9

Question:

Suppose the risk-free rate is 4.2 percent and the market has an of 10.9 percent. The market has a variance of .0382. Z has a correlation coefficient with the market of .28 and a variance of .3285. According to the capital asset pricing model, what is the on Z?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...