Wagner Assets Management Group holds 3 stocks in their
investment portfolio. The amount of the investment and beta of each
stock is listed below.
Stock
Investment Beta
A $
300,000
-0.50
B
500,000
1.20
C
200,000
1.50
Currently the market expected rate of return is 10%, and the
risk-free rate is 4%.
Based on Capital Asset Pricing Model (CAPM), the expected return
of the portfolio is ?
Wagner Assets Management Group holds 3 stocks in their investment portfolio. The amount of the investment and beta of ea
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