Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.75. If

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Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.75. If the risk-free interest rate is 5.5% and the expected return of the market portfolio is 14%, what is the expected return of a portfolio that consists of 70% Autodesk stock and 30% Costco stock, according to the CAPM?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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