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Suppose you are considering to construct a portfolio by including two stocks: 70% in Walt...

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Suppose you are considering to construct a portfolio by including two stocks: 70% in Walt Disney and 30% in Cisco system, Inc. Disney stock has a beta of 0.51, whereas Cisco stock has a beta of 1.04. If the risk-free interest rate is 3.5% and the expected return of the market portfolio is 10%, according to the CAPM, 1. What is the expected return of a portfolio that consists of 70% Disney stock and 30% in Cisco stock? 2. What's the slope of the security market line (SML)

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