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UPS, a delivery servicescompany, has a beta of 1.1, andWal-Mart has a beta of 0.6Therisk-free rate of interest is 5% and the market risk premium

UPS, a delivery servicescompany, has a beta of 1.1, andWal-Mart has a beta of 0.6Therisk-free rate of interest is 5% and the market risk premium is 7%. What is the expected return on a portfolio with40% of its money in UPS and the balance inWal-Mart?

A.

10.6%

B.

10.07%

C.

11.66%

D.

9.54%

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Question

UPS, a delivery servicescompany, has a beta of 1.1, andWal-Mart has a beta of 0.6Therisk-free rate of interest is 5% and the market risk premium

UPS, a delivery servicescompany, has a beta of 1.1, andWal-Mart has a beta of 0.6Therisk-free rate of interest is 5% and the market risk premium is 7%. What is the expected return on a portfolio with40% of its money in UPS and the balance inWal-Mart? A. 10.6% B. 10.07% C. 11.66% D. 9.54%

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Recommended Textbook for

Managerial Accounting

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UPS, a delivery servicescompany, has a beta of 1.1, andWal-Mart has a beta of 0.6Therisk-free rate of interest is 5% and the market risk premium is 7%. What is the expected return on a portfolio with40% of its money in UPS and the balance inWal-Mart?

A.

10.6%

B.

10.07%

C.

11.66%

D.

9.54%