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on paper please Q12 (4 pts) Assume that the CAPM is true. Stock A has a beta of 0.5 and a risk premium of 7%.

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on paper please
Q12 (4 pts) Assume that the CAPM is true. Stock A has a beta of 0.5 and a risk premium of 7%. The risk-free rate is 2%. Prateek wants to create a portfolio that invests 50% of its asset in riskfree asset and the rest in the market portfolio. What is the expected return of Prateek's portfolio? A. 3.5% B. 6% C. 7% D. 8% E. 9%

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