Question: 2 ) UPS, a delivery services company, has a beta of 1 . 6 , and Wal - Mart has a beta of 0 .

2) UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.9. The risk-free rate of
interest is 6% and the market risk premium is 9%. What is the expected return on a portfolio with 40% of its
money in UPS and the balance in Wal-Mart?

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