Suppose the risk-free rate is 35 percent and the market


Suppose the risk-free rate is 3.5 percent and the market portfolio has an expected return of 10.2 percent. The market portfolio has a variance of .0312. Portfolio Z has a correlation coefficient with the market of .21 and a variance of .3215 According to the capital asset pricing model, what is the expected return on Portfolio Z?

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Financial Management: Suppose the risk-free rate is 35 percent and the market
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