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UPS, a delivery services company, has a beta of 1.5, and Wal-Mart has a beta of 0.9The risk-free rate of interest is 4 % and

UPS, a delivery services company, has a beta of 1.5, and Wal-Mart has a beta of 0.9The 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?

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