Question: Annie is curious to know what her portfolio s CAPM based expected
Annie is curious to know what her portfolio’s CAPM-based expected rate of return should be. After doing some research she figures out the market values and betas of each of her 5 stocks (shown below) and is told by her consultant that the risk-free rate is 3% and the market risk premium is 8%. Help Annie calculate her portfolio’s expected rate of return.
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