Multiple Choice
A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. What is the expected return on a portfolio that is equally-weighted in the two assets?
A) 10.50%
B) 9.75%
C) 11.25%
D) 11.00%
E) 10.00%
Correct Answer:
Verified
Correct Answer:
Verified
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