Loblaw's stock has a beta of 0.9,while Bombardier stock has a beta of 1.35.If the risk-free rate is 2%,and the market risk premium is 8%,what is the expected return on a portfolio with equal holdings of Loblaw's and Bombardier?
A) 9.25%
B) 8.75%
C) 10%
D) 11%
E) 13.25%
Correct Answer:
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