Question: To find the expected return, use the CAPM he expected return of stock G ,H i, and J? the expected return of portfolio 1, 2

To find the expected return, use the CAPM

he expected return of stock G ,H i, and J?

the expected return of portfolio 1, 2 and 3 ?

To find the expected return, use the CAPM he expected return of

Expected return of a portfolio using beta. The beta of four stocksG, H, I, and are 0.48, 0.77, 1.09, and 1.69, respectively and the beta of portfolio 1 is 1.01, the beta of portfolio 2 is 0.84, and the beta of portfolio 3 is 1.15. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 4.5% (risk-free rate) and a market premium of 9.0% slope of the line)? What is the expected return of stock G? % (Round to two decimal places.)

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