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12 pts Suppose you hold a portfollo consisting of $6,500 in Stock X and $3,500 in Stock Y. Stock X has a beta equal to

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12 pts Suppose you hold a portfollo consisting of $6,500 in Stock X and $3,500 in Stock Y. Stock X has a beta equal to 1.4 and stock Y has a beta equal to O.8. The expected market risk premium is 5.00% and the risk-free rate is 4.00 %. (a) Calculate the weights of each stock In the portfollo. (b) Calculate the portfolia's beta. 100% (c) Is this portfolio a below average risk, or an average risk, or an above average risk imvestment in the market? Why and by how much? (d) Calculate the portfolio's expected rate of return. Co lapse (e) Calculate the portfolio's risk premium. In each part, show the details of your calculations and explain the meanings of your results. In(c) explain your reasoning. Please express your answers to the rate of return and risk premium in (d) and (e) as a percentage rounded to the nearest hundreds, e.g. 12.34 %. ( 12 points) HTMLEditor x, E I E x B IUA A Paragraph 12pt

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