Question: Assume CAPM holds. Given that portfolio beta beta subscript P = 0 . 5 beta subscript A plus 0 . 5 beta subscript B ,

Assume CAPM holds. Given that portfolio beta beta subscript P=0.5 beta subscript A plus 0.5 beta subscript B, show/prove that E(Rp)=0.5E(RA)+0.5E(RB).

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