Problem

Beta and CAPM Suppose the risk-free rate is 4.2 percent and the market portfolio has...

Beta and CAPM Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9 percent. The market portfolio has a variance of .0382. Portfolio Z has a correlation coefficient with the market of .28 and a variance of .3285. According to the capital asset pricing model, what is the expected return on Portfolio Z?

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