Question: Consider the same information from the previous question: ABC Corporation: Expected Return = 10.18%, Beta = 1.06 XYZ Corporation: Expected Return = 12.69%, Beta =

Consider the same information from the previous question:

ABC Corporation: Expected Return = 10.18%, Beta = 1.06

XYZ Corporation: Expected Return = 12.69%, Beta = 1.41

Assume that both assets are priced correctly according to CAPM. Suppose that you would like to combine the assets into aportfolio with a Beta equal to 1.3

What is the expected return of the portfolio?

Expected Return of Portfolio =%

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