Question $4$

$5$ pts

Assume that you hold a diversified $$90,000$ portfolio with a beta of $1\mathrm{.}20,$ and that you are in the process of buying $1,000$ shares of a high$-$tech stock at $$10$ a share with a beta of $1\mathrm{.}70,$ and adding it to this portfolio. Also assume that risk$-$free rate is $2\%,$ and that the expected rate of return on the market is $11\mathrm{.}2\%.$ Based on the CAPM, what would be the expected rate of return for your portfolio after the purchase of this stock?

Your answer should be between $7\mathrm{.}45$ and $16\mathrm{.}30,$ rounded to $2$ decimal places, with no special characters.M