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Suppose you are given the following information: DEF Stock: Expected Return =10.18%, Beta =1.06 TUV Stock: Expected Return =12.69%, Beta =1.41 Assume that both assets

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Suppose you are given the following information: DEF Stock: Expected Return =10.18%, Beta =1.06 TUV Stock: Expected Return =12.69%, Beta =1.41 Assume that both assets are priced correctly according to CAPM. Calculate the following: Risk-free Rate = % Market Risk Premium = % Express your answers in percentage terms, rounded to 2 decimal places (ie 10.25) Suppose that you would like to combine the assets into a portfolio with a Beta equal to 1.3 What is the expected return of the portfolio? Expected Return of Portfolio = % Express your answer in percentage terms, rounded to 1 decimal place (ie 10.2) Mark for Review What's This

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