# Expected return on portfolio

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I need to see intermediate steps and forumulas.

Beta and CAPM

Suppose the risk free rate is 6.3% and the market portfolio has an expected return of 14.8%. The market portfolio has a variance of .0498. Portfolio Z has a correlation coefficient with the market of .45 and a variance of .1783. According to CAPM, what is the expected return on portfolio Z?

https://brainmass.com/business/capital-asset-pricing-model/expected-return-portfolio-155923

#### Solution Preview

In order to calculate the expected return on portfolio Z, we need to calculate the beta of the portfolio.

The formula to calculate the beta ...

#### Solution Summary

The solution explains how to determine the expected return on portfolio.

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