6.You have assets A and B. Asset A has an expected return of 10%. The market...

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6.You have assets A and B. Asset A has an expected return of10%. The market portfolio return is 12%. The risk free rate is 2%.What is the expected return of asset B if the covariance between Aand the market portfolio return is 0.032 and the covariance betweenB and the market portfolio return is 0.048?
with detailed explanation please
find expected return on asset B

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Firstly with the given information calculate beta for assetAusing the formula for Capital Asset pricing model CAPM beta expected See Answer

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6.You have assets A and B. Asset A has an expected return of10%. The market portfolio return is 12%. The risk free rate is 2%.What is the expected return of asset B if the covariance between Aand the market portfolio return is 0.032 and the covariance betweenB and the market portfolio return is 0.048?with detailed explanation pleasefind expected return on asset B