What is the expected return on a portfolio

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Reference no: EM132036169

Question

UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 1.0. The risk-free rate of interest is 4% and the market risk premium is 6%.

What is the expected return on a portfolio with 50% of its money in UPS and the rest in Wal-Mart?

Reference no: EM132036169

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