You invest 20 percent of your money in the risk-free asset, 30 percent in the market portfolio,

Question:

You invest 20 percent of your money in the risk-free asset, 30 percent in the market portfolio, and 50 percent in RedHat, a U.S. stock that has a beta of 2.0. Given that the risk-free rate is 4 percent and the market return is 16 percent, what are the portfolio’s beta and expected return?

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