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Calculate the expected return on johnny portfolio

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Alfred has an equally weighted portfolio of stocks X and Y. The beta of his portfolio is 0.9. Johnny has an equally weighted portfolio of stocks X, Y and Z. The beta of Z is 1.5. The expected return on the market portfolio is 14%, while the risk-free interest rate is 6%. Calculate the expected return on Johnny's portfolio.

Reference no: EM133121529

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