Question: Please answer the question with a detailed steps and formulas so I can understand it more. ( The Question Is Completed) Stock M has a

Please answer the question with a detailed steps and formulas so I can understand it more. ( The Question Is Completed)

Stock M has a beta of 1.2. The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent. Assume you compile a portfolio equally invested in Stock M, Stock N, and a risk-free security; the portfolio has a beta equal to the overall market. What is the expected return on the portfolio? (7 marks)

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