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1) A stock has a beta of 1.08 and has expected rate of return of 11.6 percent. A risk-free asset currently earns 3.6 percent. What

1) A stock has a beta of 1.08 and has expected rate of return of 11.6 percent. A risk-free asset currently earns 3.6 percent. What is the expected rate of return on a portfolio that is equally invested in the two assets?

A) 12.12%

B) 11.15%

C) 12.24%

D) 11.24%

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