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What is the expected return of a portfolio

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Problem - Suppose Autodesk stock has a beta of 2.40, whereas Costco stock has a beta of 0.72. If the risk-free interest rate is 4.5% and the expected return of the market portfolio is 11.0%, what is the expected return of a portfolio that consists of 60% Autodesk stock and 40% Costco stock, according to the CAPM?

Reference no: EM132962820

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