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UPS, a delivery services company, has a beta of 1.3, and Wal-Mart has a beta of 0.8 The risk-free rate of interest is 6% and

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UPS, a delivery services company, has a beta of 1.3, and Wal-Mart has a beta of 0.8 The risk-free rate of interest is 6% 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. 12.35% B. 13% C. 14.3% D. 11.7%

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