The return on the risk-free asset is 4 and the return on


The return on the risk-free asset is 4% and the return on the market is 14%

Security a beta = 1.2

Security b beta = .8

What is the portfolio expected return if you invest 35% in asset A, 45% in B, and 20% in an asset that exactly follows the overall market?

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Financial Management: The return on the risk-free asset is 4 and the return on
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