Question: Suppose a risk-free security pays a 6% return, and a market portfolio has an expected return of 10%. What is the expected return on

Suppose a risk-free security pays a 6% return, and a market portfolio

Suppose a risk-free security pays a 6% return, and a market portfolio has an expected return of 10%. What is the expected return on a portfolio with R6,000 invested in risk-free security and R4,000 invested in the market portfolio? What is the CAPM beta of the portfolio? Does the CAPM beta correspond to the portfolio weight invested in the market portfolio?

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