What is the expected return of the portfolio

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Assume that CAPM holds, Your goal is to create a portfolio of stocks X, Y, and the risk-free asset. The beta of the portfolio is P = 0:70. X has a beta of 1:5 and Y has a beta of 2:0. Expected return of Y is 10% more than the expected return of X. Risk-free rate is 5%. What is
the expected return of this portfolio?

Reference no: EM13205690

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