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A friend says that she expects to earn 13.00% on her protfoliowith a beta of 2.25. You have a two-a

A friend says that she expects to earn 13.00% on her protfoliowith a beta of 2.25. You have a two-a

A friend says that she expects to earn 13.00% on her protfoliowith a beta of 2.25. You have a two-asset portfolio including stockx and a risk-free security. The expecgted return of stock x is10.00% and the beta is 1.60. The expected return on the risk-freesecurity is 3.50%. If you construct your portfolio so that its betais equal to the beta on your friend’s portfolio, then what is theexpected return of your portfolio?