Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2%. The risky asset has a beta of 1.3 and an expected return of 14.9%. What is the expected return on the portfolio if the portfolio beta is .975?
A)7.65%
B)9.83%
C)10.73%
D)11.98%
E)12.37%

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The Answer of Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2%. The risky asset has a beta of 1.3 and an expected return of 14.9%. What is the expected return on the portfolio if the portfolio beta is .975?
A)7.65%
B)9.83%
C)10.73%
D)11.98%
E)12.37%

Laura Has One Risk-Free Asset and One Risky Stock in Her