What return should you expect on your portfolio

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Question - You have a portfolio that consists of 35% Microsoft stock, 35% Amazon stock, and 30% GE stock. Microsoft has a standard deviation of 1, Amazon has a standard deviation of 3.0, and GE has a standard deviation of 0.5. Treasury bills (the risk-free asset) currently offer a return of 4%, and the expected return on the market is 11.5%. What return should you expect on your portfolio according to the CAPM?

Reference no: EM133187605

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