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13. The Treasury Bill is returning 3%, the market return is expected to be 7%. Your portfolio consists of $300,000 Allied Chemical common stock and

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13. The Treasury Bill is returning 3%, the market return is expected to be 7%. Your portfolio consists of $300,000 Allied Chemical common stock and $700,000 of Binary Systems common stock. Allied has a Beta of 1.2 and Binary's Beta is .9. What should be the portfolio's required return? a) 2.02% b) 7.08% c) 8.16% d) 6.96%

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