What is the expected return on a portfolio

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Reference no: EM132383002

Stock XYZ has a beta of 1.3 and an expected return (rS) of 9.3%. The risk-free rate (rRF) is currently 2.6%.

What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free asset?

Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)

Reference no: EM132383002

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