Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 15%, and on the zero-beta portfolio it is 7%. What is the expected return on a portfolio with a beta of 0.7

Expected return is 12.6%

Explanation:

Zero beta portfolio has no systematic risk. A zero beta portfolio has same expected rate of return as risk free rate. It does not effects with market change.

Using CAPM formula to calculate the expected return

Expected return = Risk free rate + Beta ( Market rate - risk free rate )

As we know

Expected return on zero beta portfolio = risk free rate

Expected return = 7% + 0.7 ( 15% - 7% )

Expected return = 7% + 0.7 ( 8% )

Expected return = 7% + 5.6%

Expected return = 12.6%

The Spanish Empire itself grew to encompass much of the territory that it would hold in the Americas, and extended the tenets of loyalty to the Catholic monarchy there, as well as reinforcing it (as well as they could manage) in the European portions outside of mainland Spain. It led to the apex of Spanish hegemony in Europe and after the battle against England with the Armada, it led to the ascendance of other powers in the colonial arena and Spain's own gradual decline.