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UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 5% and

UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 5% and the market risk premium is 9%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal-Mart? A. 15.9% B. 17.3% C. 14.5% D. 13.7%

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