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3. How many shares of company A and B must you purchase so your portfolio has a beta of 2.00 ? Assume you have 5,000

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3. How many shares of company A and B must you purchase so your portfolio has a beta of 2.00 ? Assume you have 5,000 to invest. Stock A B Beta 0.90 3.10 Price 4.00 5.00 M =700%, f = 2.00% b. What is the expected return on your portfolio? c. Stock A pays an end-of-year dividend of 0.20 and its price in 1-year is 5.00. At the current price of 4.00 is the stock under or (over-valued) by how much

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