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3. If the risk-free rate is 6% and the expected return of the market is 12%, what is the expected return of a portfolio that

3. If the risk-free rate is 6% and the expected return of the market is 12%, what is the expected return of a portfolio that is equally invested in

treasury bills and a stock with a beta of 1.3?

A. 9.9% B. 10.2% C. 13.8% D. 12.9% E. 19.8%

The answer is A. Please show the precess.

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