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a. An individual has $25,000 invested in a stock with a beta of 0.5 and another $55,000 invested in a stock with a beta of

a. An individual has $25,000 invested in a stock with a beta of 0.5 and another $55,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places. _____

b. Assume that the risk-free rate is 3.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. _____ %

c. Assume that the risk-free rate is 6.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. ___ %.....What is the required rate of return on a stock with a beta of 0.7? Round your answer to one decimal place. ____ %

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