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Oracle has a beta of 2. Market risk Premium, (RM - RF), is 9%. Risk free rate is 7%. You invest 50% of your money

Oracle has a beta of 2. Market risk Premium, (RM - RF), is 9%. Risk free rate is 7%. You invest 50% of your money in Oracle and 50% in a risk-free T-bond.

a) Find the expected rate of return on this portfolio.

b) Find the beta of this portfolio.

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