Question: Calculate the expected return ( according to the CAPM ) if the risk - free rate is 3 % , the beta is 0 .

Calculate the expected return (according to the CAPM) if the risk-free rate is 3%, the beta is 0.4, and the market risk premium is 5.5%. The answer should be given in decimal form (e.g., write 0.055 if the correct answer is 5.5%).

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