Question: The risk free rate is 4%, and the expected return on the market is 12%. What is the required return on portfolio consisting of 30%

The risk free rate is 4%, and the expected return on the market is 12%. What is the required return on portfolio consisting of 30% of an asset with a beta of 1.5 and the rest in an asset with no risk?

A) 7.6%

B) 8.8%

C) 12.4%

D) 10.3%

E) 9.1%

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