Laura has one risk-free asset and one risky stock in her


Problem

Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. The risky asset has a beta of 1.3 and an expected return of 14.9 percent. What is the expected return on the portfolio if the portfolio beta is .975?

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Accounting Basics: Laura has one risk-free asset and one risky stock in her
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