# Expected Return

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?

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