Bankers Corp. has a very conservative beta of $\mathrm{.}7,$ while Biotech Corp. has a beta of $2\mathrm{.}1.$ Given that the T$-$bill rate is $5\%,$ and the market is expected to return $15\%,$ what is the expected return of the portfolio if the portfolio is composed of $78,000$ of Bankers Corp. and $52,000$ Biotech Corp.?

Required:

Solve this problem first by weighting the betas to calculate a portfolio beta, and then using CAPM to calculate the portfolio expected return.