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UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 1 . The risk-free rate of interest is 5%

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UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 1 . 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. 20% B. 16.7% C. 18.4% D. 15.9%

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