Question: Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of? 13.1%. Asset C has
Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of? 13.1%. Asset C has a beta of .50 and an expected return of? 7.50%. The risk?free rate is? 4%. If you wish to hold a portfolio consisting of assets B and? C, and have a portfolio beta equal to? 1.0, what is the expected return of the? portfolio?
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