Question: Calculate the expected return from the following security using the CAPM Capital Asset Pricing Model. Standard Deviation of Security = 0.16 Standard Deviation of Market

Calculate the expected return from the following security using the CAPM Capital Asset Pricing Model.

Standard Deviation of Security = 0.16

Standard Deviation of Market Portfolio = 0.10

Expected Return on Market Portfolio 0.09

Correlation between possible Returns for the Security and the Market Portfolio 0.70

Expected Risk Free Rate 0.03

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