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UPS, a delivery services company, has a beta of 1.2, and Wal-Mart has a beta of 0.8. The risk-free rate of interest is 6% and

UPS, a delivery services company, has a beta of 1.2, and Wal-Mart has a beta of 0.8. The risk-free rate of interest is 6% and the market risk premium is 8%. What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart?

A.13.09%

B.14.03%

C.12.69%

D.13.36%

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