Question
UPS a delivery service company, has a beta of 1.1 and Wal-Mart has a beta of 1 The risk-free rate of interest is 4% and
UPS a delivery service company, has a beta of 1.1 and Wal-Mart has a beta of 1 The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?
A. 12.41%
B. 10.72%
C. 10.15%
D. 11.28%
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Financial Management Principles And Applications
Authors: Sheridan Titman, John Martin
14th Global Edition
1292349824, 978-1292349824
