Question: Suppose the risk - free return is 4 % and the market portfolio has an expected return of 1 0 % and a volatility of

Suppose the risk-free return is 4% and the market portfolio has an expected return of 10% and a volatility of 16%. Apple stock
has a 20% volatility and a correlation with the market of 0.06.
a. What is Apples beta with respect to the market?
b. Under the CAPM assumptions, what is its expected return?

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