Question: Expected return on stock A 8 Expected return on stock B 7 Beta of stock A 1.2 Beta of Stock B 1 Assume that CAPM

Expected return on stock A 8
Expected return on stock B 7
Beta of stock A 1.2
Beta of Stock B 1

Assume that CAPM holds. What is the expected return on the market portfolio? Include at least two digits.

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