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Business, 07.04.2020 22:45 Savageman4654

Jonathan Crowley is a portfolio manager for a large pension fund. Last year his portfolio had an actual return of 12.6% with a standard deviation of 13% and a beta of 1.3. The market risk premium for this period of time was 6% and the risk-free rate of return was 5%.82.

Based on the Capital Asset Pricing Model (CAPM), what is the required rate of return for this portfolio?

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