# Expected Return on the Above Portfolio

Thank you for your assistance on the following hypothetical example.

Suppose you have invested $30,000 in the following four stocks:

Security Amount Invested Beta

Stock A $5,000 0.75

Stock B $10,000 1.1

Stock C $8,000 1.36

Stock D $7,000 1.88

The risk-free rate is 4 percent and the expected return on the market portfolio is

15 percent. Based on the capital-asset-pricing model, what is the expected return on the above portfolio?

https://brainmass.com/business/beta-and-required-return-of-a-project/expected-return-above-portfolio-43315

#### Solution Preview

Thank you for your assistance on the following hypothetical example.

Suppose you have invested $30,000 in the following four stocks:

Security ...

#### Solution Summary

This expected the calcualtion of expected return on the above portfolio

$2.19