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    Expected Return

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    Work and explain in excel

    Suppose you invested 35,000 in the following four stocks

    invested Beta
    A 14,000 0.6
    B 15,000 1.1
    C 16,000 1.3
    D 17,000 1.8

    Risk free rate is 5 percent and expected return on the market portfolio is 18 percent.
    Based on CAPM, what is the expected return on the above portfolio?

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    https://brainmass.com/business/beta-and-required-return-of-a-project/how-to-calculate-expected-return-on-a-portfolio-77122

    Solution Preview

    Please see the attached file.

    Stock Amount Beta
    A 14,000 0.6
    B 15,000 1.1
    C 16,000 1.3
    D 17,000 1.8
    Total Amount 62,000

    To find the expected return on a portfolio, we need the ...

    Solution Summary

    The solution explains how to calculate the expected return on a portfolio

    $2.19

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