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?
◦ 10.72%
◦ 11.85%
◦ 10.01%
◦ 9.91%