Beta and CAPM Suppose the risk-free rate is 3.9 percent and the - 12420

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Beta and CAPM Suppose the risk-free rate is 3.9 percent and the market portfolio has an expected return of 11.2 percent. The market portfolio has a variance of 0.0460. Portfolio Z has a correlation coef?cient with the market of 0.55 and a variance of 0.3017. According to the capital asset pricing model, what is the expected return on portfolio Z?

 

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