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What return should you expect on your portfolio

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Question - Suppose you hold a portfolio that consists of 35% Microsoft stock, 35% Treasury bills, and 30% GE stock. Microsoft's beta is 1 and GE's beta is 0.5. Treasury bills (the risk- free asset) offer a return of 4% and the expected return on the market is 11.5%. According to the CAPM, what return should you expect on your portfolio?

Reference no: EM132536365

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