Suppose Intel stock has a beta of 2.16 whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?© BrainMass Inc. brainmass.com June 3, 2020, 10:27 pm ad1c9bdddf
Expected return on Intel R intel = ...
The solution determines what intel's and boeing's stock expected return is with different betas. The CAPM is analyzed.