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The Socially Responsible Fund (SRF) has a portfolio beta of 0.9. You have a two-asset portfolio including the market portfolio and the risk-free asset. The
The Socially Responsible Fund (SRF) has a portfolio beta of 0.9. You have a two-asset portfolio including the market portfolio and the risk-free asset. The expected return on the market is 10% and the expected return on the risk-free asset is 4%. If you construct your portfolio so that its beta is equal to the beta on SRF, then what is the expected return of your portfolio? Express your answer in percentage form rounded to one decimal. Expected return %
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