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2. UPS, a delivery services company, has a beta of 1.5, and Wal-Mart has a beta of 0.8. The risk-free rate of interest is 3%

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2. UPS, a delivery services company, has a beta of 1.5, and Wal-Mart has a beta of 0.8. The risk-free rate of interest is 3% and the market risk premium (Im-IR) is 5%. What is the expected return on a portfolio with 60% of its money in UPS and 40% in Wal-Mart? (5 points)

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