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UPS, a delivery services company, has a beta of 1 . 5 , and Wal-Mart has a beta of 0 . 6 . The risk-free

UPS, a delivery services company, has a beta of
1.5,
and Wal-Mart has a beta of
0.6.
The risk-free rate of interest is
6%
and the market risk premium is
9%.
What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart?

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