Part $1$

You have $$1,000$ invested in ABC stock $($currently priced at $$70$ per share, beta $=1\mathrm{.}5).$ You hold $$1,000$ of

DEF stock $($ $$40$ per share and beta$=1\mathrm{.}8).$ You also have $$6,000$ in a risk$-$free asset. The market portfolio has

expected return $7\%,$ while the risk$-$free rate is $2\%.$ What is the expected return on your portfolio? Report your

answer as a percentage correct to at least four digits after the decimal.

$4+$ decimals