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A mutual manager is managing the account of a large investor. The investor holds the following stocks: Stock Amount Invested Estimated Beta A $2,000,000 0.80
| A mutual manager is managing the account of a large investor. The investor holds the following stocks: | |
| Stock Amount Invested Estimated Beta | |
| A $2,000,000 0.80 | |
| B 3,000,000 ???? | |
| C 1,000,000 1.40 | |
| D 4,000,000 1.65 | |
| The portfolios required rate of return is 13 percent. The risk-free rate is 4 percent and the total return on the market portfolio is 10 percent. What is Stock Bs estimated beta? |
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
