Question: Problem 13-29 Using CAPM (LO1, 4) A portfolio invests in a risk-free asset and the market portfolio has an expected return of 7% and a

Problem 13-29 Using CAPM (LO1, 4) A portfolio invests in a

Problem 13-29 Using CAPM (LO1, 4) A portfolio invests in a risk-free asset and the market portfolio has an expected return of 7% and a standard deviation of 10%. Suppose the risk-free rate is 4%, and the standard deviation on the market portfolio is 22%. According to the CAPM, what expected rate of return would a security earn if it had a 0.55 beta? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected rate of return

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