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Sky Co. has a beta of 1.3 and Land Co. has a beta of 1.1. The risk free rate is 2% and the required return

Sky Co. has a beta of 1.3 and Land Co. has a beta of 1.1. The risk free rate is 2% and the required return on the market rM is 11%. According to the CAPM, what is the required return on a portfolio invested 70% in Sky Co. and 30% invested in Land Co.?

a. 9.02%

b. 12.02%

c. 13.16%

d. 15.64%

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