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12.6 Self-Test Suppose you invest $400,000 in Treasury bills and $600,000 in the market port- folio. What is the return on your portfolio if bills

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12.6 Self-Test Suppose you invest $400,000 in Treasury bills and $600,000 in the market port- folio. What is the return on your portfolio if bills yield 3% and the expected return on the market is 10%? What does the return on this portfolio imply for the expected return on individual stocks with betas of .6? 12.7 Self-Test Walmart is planning an Internet subsidiary to compete head-to-head with Ama- zon. It argues that it can compete aggressively in Internet retailing because it has a low beta and its shareholders will be content with an expected rate of return of only 5.6%. Is the argument correct

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