Mr.Khalid holds a portfolio that consists of 35% Oman tel stock and 35% Treasury bills, and 30% Oman cements. Oman tel beta is 1 and Oman cement beta is 0.75. Treasury bills offers a return of 6% and the expected return on the market is 10%. According to CAPM what return should you expect on his portfolio?

a.

3.2

b.

All

c.

1.6

d.

8.3