UPS,a Delivery Services Company,has a Beta of 1

question 96

Multiple Choice

UPS,a delivery services company,has a beta of 1.2,and Wal-Mart has a beta of 0.8.The risk-free rate of interest is 4% and the market risk premium is 7%.What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

• A)9.91%
• B)10.01%
• C)10.72%
• D)11.85%

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Definitions:

Sedition Act of 1918

A United States federal law enacted during World War I to restrict speech that was deemed disloyal or abusive towards the government, flag, or military, later repealed but controversial for its impact on free speech.

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