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1. You are holding two stocks in your portfolio. Stock 1 has a beta of . 7 while Stock 2 has a beta of 1.9.

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1. You are holding two stocks in your portfolio. Stock 1 has a beta of . 7 while Stock 2 has a beta of 1.9. You have 30% of the portfolio invested in Stock 1 (i.e., the investment in Stock 1 represents 30% of the total value of the portfolio) with the rest invested in Stock 2 . If the current risk-free interest rate is 4% and the expected return of the so-called "market portfolio" is 14%, what is the expected return of your portfolio? A. 14.6% B. 15.4% C. 18.84% D. 19.4% E. 25.56%

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