Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
The price is 40 dollars because you have to plus it
Solution :
The optimal order quantity, EOQ = 
EOQ = 
= 115.47
The expected number of orders = 

= 17.32
The daily demand = demand / number of working days

= 8.33
The time between the orders = EOQ / daily demand

= 13.86 days
ROP = ( Daily demand x lead time ) + safety stock

= 76.64
The annual holding cost = 

= 207.85
The annual ordering cost = 

= 207.85
So the total inventory cost = annual holding cost + annual ordering cost
= 207.85 + 207.85
= 415.7