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UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 6% and
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Answer #1

portfolio beta=50%*1.6+50%*0.7=1.15

expected return

=rf+portfolio beta*mrp

=6%+1.15*7%

=14.1%

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