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3. Assume that the CAPM holds, and the following is known about the market: a. The market portfolio has an expected return of 15% and

3. Assume that the CAPM holds, and the following is known about the market: a. The market portfolio has an expected return of 15% and standard deviation of 20%, b. The risk-free rate is 3%. c. Stock A has an expected return of 25% d. Stock B has standard deviation of 15% and correlation of 0.6 with the market portfolio What is the beta of a portfolio with 30% in stock A and 70% in stock B?

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