What is the expected return on this portfolio

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Reference no: EM13972014

A stock has a beta of 1.12, an expected return of 10.22 percent, and lies on the security market line. A risk-free asset is yielding 3.51 percent. Ferghus wants to create a $15,000 portfolio that is comprised of these two securities and that will have a portfolio beta of 0.8. What is the expected return (in percents) on this portfolio?

Reference no: EM13972014

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