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1) An individual has $30,000 invested in a stock with a beta of 0.7 and another $45,000 invested in a stock with a beta of
1) An individual has $30,000 invested in a stock with a beta of 0.7 and another $45,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
2)Stock R has a beta of 1.0, Stock S has a beta of 0.65, the expected rate of return on an average stock is 8%, and the risk-free rate is 5%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exceed that on the less risky stock? Round your answer to two decimal places.
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