7. Assume you want to construct a portfolio from the following two securities. What is the expected return on your portfolio if you invest $800,000 in Security 1 and $200,000 in Security 2? Security Expected Return Beta 1 14.0% 1.12 2 10.5% 0.94

A. 13.8% B. 13.6% C. 13.3% D. 12.9% E. 12.3%

7. Assume you want to construct a portfolio from the following two securities. What is the expected return on your portfolio if you invest $800,000 in Security 1 and $200,000 in Security 2? Security Beta Expected Return 14.0% 10.5% 1.12 0.94 A. 13.8% B. 13.6% C. 13.3% D. 12.9% E. 12.3%