Question: Hey i need help with this problem! If you can provide an explanation on how you got the answer thatd help me a lot! Suppose
Suppose Autodesk stock has a beta of 2.10 , whereas Costco stock has a beta of 0.70 . If the risk-free interest rate is 6% and the expected return of the market portfolio is 13.0%, what is the expected return of a portfolio that consists o 55% Autodesk stock and 45% Costco stock, according to the CAPM? The expected retum is \%. (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
