# Question: Suppose the risk free rate is 3 9 percent and the market

Suppose the risk-free rate is 3.9 percent and the market portfolio has an expected return of 11.2 percent. The market portfolio has a variance of .0460. Portfolio Z has a correlation coefficient with the market of .55 and a variance of .3017. According to the capital asset pricing model, what is the expected return on portfolio Z?

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