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Star Corp. has a beta coefficientof 1.2, andMoon Enterpriseshas a beta coefficientof 0.8. The risk-free rate of interest is 4% and the market risk premium

Star Corp. has a beta coefficientof 1.2, andMoon Enterpriseshas a beta coefficientof 0.8. The risk-free rate of interest is 4% and the market risk premium is 7%.

Whatis the expected return on a portfolio with40% of its assets invested ininStar Corp. and the rest invested inMoon Entreprises?

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