John has invested $ 6 million in shares of four companies. The table shows how much it invested and the beta value of the shares in question The interest rate on risk-free investment (rf) is 3.8% and the estimated return on the market (rm) is 11%. Based on CAPM, what will be John's expected return on this portfolio?

Shares in company	Amount purchased	Beta value
Shares in company A	1500000	0.75
Shares in company B	1800000	1.10
Shares in company C	1400000	1.40
Shares in company D	1300000	1.55

Answer rating: 100% (QA)

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