Assume that CAPM holds, i$.$e$.r_i=r_0+{}_i({}_M-r_0)$ where ${}_i=\frac{{}_{iM}}{{}_M^2}.$ Your goal is to create a

portfolio of stocks $x,Y,$ and the risk$-$free asset. The beta of the portfolio is ${}_P=0\mathrm{.}7.x$ has

a beta of $1\mathrm{.}5$ and $Y$ has a beta of $2\mathrm{.}0.$ Expected return of $Y$ is $10\%$ more than the expected

return of $x.$ Risk$-$free rate is $5\%.$ What is the expected return of this portfolio?