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13. Stock A has a beta of 9 and Stock B has a beta of 1.6. The risk-free interest rate is 3% and the market

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13. Stock A has a beta of 9 and Stock B has a beta of 1.6. The risk-free interest rate is 3% and the market portfolio has an expected return of 12%. What would be the expected return of a portfolio comprised of stocks A and B, with 30% of the portfolio devoted to Stock A and 70% to a. 12.51% B. 12.99% 8. 15.51% b. 16.32%3%+.9(123%)=.111 =3%+1.6(123)=+174

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