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Risk-averse Corp has a very conservative beta of 0.8, while Risk-loving Corp has a beta of 2.1. If the T-bill rate is 4.5%, and the
Risk-averse Corp has a very conservative beta of 0.8, while Risk-loving Corp has a beta of 2.1. If the T-bill rate is 4.5%, and the market is expected to return 11.5%, what is the expected return on a portfolio composed of 30% Risk-averse Corp and 70% Risk-loving Corp?
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