Question $6$

If you have a $$500,000$ portfolio with a beta of $2\mathrm{.}2,$ should you add $$30,000$ of a stock with

a beta of $1\mathrm{.}1$ and an expected return of $10\mathrm{.}5\%$ if the risk$-$free rate is $3\%$ and the market risk

premium is $6\%?$

Yes

No