The required return on the HT/Coll. portfolio is:

= 0.5(17%) + 0.5(2%) = 9.5%.

Or use SML:

kp = kRF + (kM - kRF) bp

= 8.0% + (15.0% - 8.0%)(0.22)

= 8.0% + 7%(0.22) = 9.5%.

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