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Stock A has a beta of 0.88 and volatility of 0.58. Stock B has a beta of 1.45 and volatility of 0.89. You form a
Stock A has a beta of 0.88 and volatility of 0.58. Stock B has a beta of 1.45 and volatility of 0.89. You form a portfolio with $8,000 in Stock A and $8,000 in Stock B. What is your portfolio's expected return if the market risk premium is 6.5% and the T-Bill yield is 2.7%? Enter your answer as a decimal showing four decimal places. For example, if your answer is 8.25%, enter .0825.
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