A stock has a beta of 1.1, an expected return of 12.44 percent, and lies on the security market line. A risk-free asset is yielding 3.2 percent.

A stock has a beta of 1.1, an expected return of 12.44 percent, and lies on the security market line. A risk-free asset is yielding 3.2 percent. You want to create a $15,000 portfolio that is comprised of these two securities and that will have a portfolio beta of .7. What is the expected return on this portfolio? A. 8.40 percentB. 9.08 percentC. 9.90 percentD. 10.79 percentE. 11.60 percent