Question: The market index has average return 8% and standard deviation 25%. The risk-free rate is 3%. A portfolio 'A' has beta 0.9, idiosyncratic variance

The market index has average return 8% and standard deviation 25%. The

The market index has average return 8% and standard deviation 25%. The risk-free rate is 3%. A portfolio 'A' has beta 0.9, idiosyncratic variance of 0.05, and an M-measure of 0.02. What is the average return on the portfolio?

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