Problemups has a beta of 12 and walmart has a beta of 08, Ask an Expert

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Problem:

UPS has a beta of 1.2 and Walmart has a beta of 0.8. The risk-free rate of interest is 4% and the market risk premium is 7%.

Required:

Question: What is the expected return on portfolio with 40% of its money in UPS and the balance in Walmart?

a. 9.91

b. 10.01

c. 10.72

d. 11.85

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162544

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