Stock M has a beta of 1.2.The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent.Assume you compile a portfolio equally invested in Stock M,Stock N,and a risk-free security; the portfolio has a beta equal to the overall market.What is the expected return on the portfolio?
A)11.2 percent
B)10.8 percent
C)10.4 percent
D)11.4 percent
E)11.7 percent

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The Answer of Stock M has a beta of 1.2.The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent.Assume you compile a portfolio equally invested in Stock M,Stock N,and a risk-free security; the portfolio has a beta equal to the overall market.What is the expected return on the portfolio?
A)11.2 percent
B)10.8 percent
C)10.4 percent
D)11.4 percent
E)11.7 percent

Stock M Has a Beta of 1