Multiple Choice
Stock XYZ has a beta of 1.2 and an expected return of 14%; the risk-free asset (T-bills) currentlyearns 4%. What is the expected return on a portfolio if 50% of your money is invested in Stock XYZand 50% in T-bills?
A) 8%
B) 18%
C) 9%
D) 14%
Correct Answer:
Verified
Correct Answer:
Verified
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