Question
A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. a. What is the
A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. |
a. | What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
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