Expect to earn on portfolio

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A stock has a beta of 1.10, an expected return of 12.11 percent, and lies on the security market line. A risk-free asset is yielding 3.2 percent. You want to create a portfolio valued at $12,000 consisting of Stock A and the risk-free security such that the portfolio beta is .80. What rate of return should you expect to earn on your portfolio? 9.68 percent 9.16 percent 9.33 percent 9.41 percent 9.56 percent

Reference no: EM131354041

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