What is the expected return on a portfolio

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UPS a delivery service company, has a beta of 1.1 and Wal-Mart has a beta of 1 The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

A. 12.41%

B. 10.72%

C. 10.15%

D. 11.28%

Reference no: EM131562451

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