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You have $5,000 invested in Security M, $3,000 invested in Security L, and $2,000 invested in Security P. Security M has a beta of 0.85;
You have $5,000 invested in Security M, $3,000 invested in Security L, and $2,000 invested in Security P. Security M has a beta of 0.85; Security L has a beta of 1.50; and Security P has a beta of 1.90. The relevant risk -free rate is 7%, and the expected return on the market portfolio is 18%. What is the expected return on your portfolio? Round your answer to the nearest tenth of a percent. A) 6.8% B) 18.0% C) 20.8% D) 29.6%
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