Respuesta :
A model for valuing risky assets is the capital asset pricing model. The asset's beta, which gauges the systematic risks of the asset, is connected quantitatively to the needed return on the asset. According to CAPM, the asset's beta and the market risk premium are multiplied together to create the needed return on the asset above the risk-free rate.
The portfolio's anticipated return is 11.4%.
The expected return on an asset, as determined by CAPM, is given by:
Expected return = beta * market risk premium + risk free rate
We must know the portfolio's beta in order to calculate the return on the investment. Since the market has a beta of one by definition, we know that the portfolio's beta is equal to the market's. The portfolio beta is therefore therefore 1. The projected return on the portfolio is as follows because we also know that the risk free rate is 3.6% and the market risk premium is 7.8%:
3.6% + 1*7.8% = 11.4%.
What sort of thing falls under a capital asset?
Property held for personal use (such as a person's home, car, furniture, and jewelry) and property held for investment are examples of capital assets (such as stocks, bonds).
To learn more about capital asset from the given link.
https://brainly.com/question/15300072
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