Conservative beta, Bankers Corp has a very conservative

Conservative beta

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Reference no: EM131020159

Bankers Corp has a very conservative Beta of .7, while Biotech Corp has a Beta of 2.1. Given that the T-bill rate is 5%, and the market is expected to return 15%, what is the expected return of Bankers Corp, Biotech Corp, and a portfolio composed of 60% of Bankers Corp and 40% Biotech Corp?

Reference no: EM131020159

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